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THE 


EXPLANATION 


SAMUEL LEGGETT, 


LATE PRESIDENT OF 

V'btffivan'kUu Uattfe 

OF THE CITY OF NEW-YORK. 


NEW- YORK 5 

PRINTED BY E. CONRAD, 
No. 11 Frankfort-Street. 


1851 . 





















































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THE 


EXPLANATION AND VINDICATION 


OF 

SAMUEL LEGGETT, 

Late President of the Franklin Bank 


IN THE CITY OF NEW-YORK. 


TO THE PUBLIC. 

The embarassments which led to the suspension of pay- 
ment of the Franklin Bank in this city, on the 29th of 
May, 1828, have long been a subject of interest in the 
public mind, and the cause of various conjectures and sur- 
mises, among the depositors, bill and stock-holders of that 
institution. 

It is well known that I made an application to the Chan- 
cellor of this state, to procure an injunction against the 
institution, suspending its operation on the day above 
mentioned. 

Before entering upon this procedure, the subject was 
as fully considered as circumstances would admit, and 
some of its consequences anticipated ; but the application 
to the Court of Chancery was one which the subscriber 
deemed indispensably necessary, as well from a regard to 
the other monied institutions of the city, as from a solemn 
conviction in his own mind, that the time had come when 



4 


there was no course left other than the one pursued. It 
was expected that censure, and crimination would follow 
this measure ; that persons immediately interested in the 
institution, as well as many others who were indirectly 
affected by its failure, would cast the blame of the catas- 
trophe on some person, and as is generally thecase, without 
the best or true reasons in the selection of the objects of 
their displeasure and remarks. 

The undersigned being at the time of the embarrass- 
ment of the institution, its President, and having been con- 
nected with the Bank (with about two years interval) from 
its commencement, was naturally the most prominent 
mark for the shafts of calumny. 

The subscriber has experienced a series of slanders, 
arising from his connection with the institution, certainly 
of a very grievous, and as he hopes to show, of an unjust, 
unmerited and cruel character. 

The silence heretofore observed, has arisen from causes 
beyond his control. Independent of the excitement in 
the public mind, the prejudices which existed far and wide, 
and which excluded the fiope of a dispassionate and candid 
consideration of the whole transaction, so far as the cha- 
racter and conduct of the President were concerned, there 
were other insuperable difficulties which prevented an ap- 
peal to the public at an earlier day. 

Prosecutions in various forms, in different courts, and 
by numerous persons, were instituted, and in course of ad- 
judication, to make the subscriber personally responsible 
for the defalcations and losses incidental to the failure of 
the Bank ; and he was continually and forcibly advised by 
Counsel, that a publication of the facts, and a justifica- 
tion of his conduct (pending these suits) would be a con- 
tempt of Court , and render him liable to the rigid arm of 
the law : that hue, or imprisonment, or both, might be the 
consequence of a publication of the nature now made : 
besides, an immediate exposure would have caused great 
and incalculable loss to the Bank. 


5 


One of these suits sharply contested, and sustained by 
able Counsel, to obtain redress from me personally, after 
a long and laboured argument, before the Superior Court 
in the city of New- York, has very recently been determined 
by the unanimous opinion of its learned Judges, in my fa- 
vour. The merits of the controversy having been fully dis- 
cussed and solemnly considered, and a judgment awarded 
in my favour by so high and competent a tribunal, I feel 
now justified in making this appeal to the public, and 
I am not deterred from doing so, although other causes 
of the same nature are now in prosecution against me, in 
other or different courts ; for although I entertain great 
deference and respect for the laws of my country and its 
constituted authorities, and although I am aware that even 
now, 1 may be exposed to prosecution and vexatious pro- 
ceedings, yet the delays of law are so protracted, and the 
end of litigation so remote and uncertain — the amount of 
slander and contumely so great, that I feel myself em- 
boldened to come forward at this time to confront my 
adversaries, and I hope to convince the public, by a plain 
detail of facts and circumstances, that I am an injured 
man — unjustly and cruelly slandered, where I have least 
deserved it, and when J was entitled to the indulgence, 
if not the approbation of all those who have persecuted me. 

I now proceed with the history and facts which led to 
the embarrassment and suspension of payment of the 
Franklin Bank. No attempt will be made to embellish 
the narrative, for, I am an unlettered man, and it is my 
sole desire, that all who read may fully understand. 

The Franklin Bank was (I believe) incorporated in 
1 81 8, and commenced its operations on the first of August 
of that year. Its progress and prosperity gave it a high 
rank amongst the monied institutions in this city; its stock 
commanded a ready sale, and generally a high premium ; 
its location was supposed to be peculiarly favourable ; its 
dividends were always respectable, and the public deserv- 
edly had full confidence in its soundness and solvency for a 
series of years. On the 13th of August, 1 825. 1 ceased to 


G 


be a Director of the institution ; at which period the stock 
bore a pemium in the market of about 20 per cent, and no 
monied institution in this metropolis was more confided in, 
or possessed a more deserved credit. The discounted 
bills at that period, in good and unexceptionable notes, 
were in amount equal to those of any other banking in- 
stitution in the cily, in comparison with its capital, and 
its circulation of no*es, was as great, if not greater than 
any other Bank.* It is proper here to remark, that the 
notes discounted up to the time at which I ceased to he a Di- 
rector, ( the 13 th of August, 1825) have been duly paid ; that 
if there were any losses up to that period, the amount 
was so small as not to be of any serious import, and never 
injured the credit of the Bank, lessened its dividends, or 
impaired the public confidence in its stable condition, or 
reduced the premium on its capital stock. 


* On the 21st May, 1825, the Bills discounted were $1,834,379 


Deposits, - - 1,157,657 

Circulation, - 436,540 


About this time I concluded to leave the institution, and commenced cur- 
tailing- for that event; therefore on the 13th August, 1825, the day I re- 
signed, the Bank had 


Bills Discounted, 

Deposits, - 

Circulation, - 

Surplus and Discount received, 


$1,537,895 

864,257 

391,098 

67,899 


1 confidently and boldly assert, that no institution at that time or since, 
could show a more firm and responsible mass of paper, and 1 fearlessly refer 
to the Discount Ticklers of the institution for the truth of this remark, now 
in the possession of James Kent. 


7 


This is an important part of the history of the institution, 
as regards myself; before which time I had an active 
agency in its business concerns, gave perhaps as much 
attention to the detail and management of the institution, 
and perhaps more, than any other Director. It may be 
here further observed, that I had been the President of the 
Bank for about six years previously. During this supervi- 
sion of the institution, I devoted my time and attention 
almost exclusively to the financial concerns of the Frank- 
lin Bank, and I assert with confidence, that no monied 
institution did for that time, transact its business in a 
more regular, safe, judicious and effective manner, or 
make dividends more fairly earned ; these dividends, 
I believe, amounted to $300, 000, or upwards. For the 
the truth of this representation, I refer the reader, in the 
most entire confidence of its correctness, to the books of 
accounts now in the possession of James Kent, Esq. the 
receiver, who will, doubtless, for the satisfaction of the in- 
quirer, as well as in justice to me, give every facility to 
all inquiries and solicitation^ made to him, on any subject 
involved in this part of my justification. 

It may be proper to remark here, that when 1 ceased to 
be a Director on the 13th of August, 1825, 1 engaged in a 
profitable mercantile pursuit, as one of the firm of Leggett, 
Pearsall and Co. Auctioneers and Commission Merchants 
in this city, and within a year after I had left the Bank, 
(say on the 10th June, 1 826) I disposed of my stock in that 
institution to two respectable gentlemen, neither of whom 
were connected with the Bank (one of whom holds a part 
of it to this day). The same were disposed of in the ordi- 
nary course of business, at the market price; the sale was 
about 235 shares, and as far as I can now recollect, I ob- 
tained six per cent, premium thereon. This number of 
shares, with eight more, was all the stock that I held when 
I left the Bank. I had held that number, and no more , for 
near two years previously, and I was in no manner interest- 
ed, directly or indirectly, over and above the said number 


8 


of 24S shares. These shares were purchased by me 
of David Stebbins, at a premium of about twenty-nine 
per cent. — After the sale of this stock, 1 devoted my- 
self to mercantile pursuits, was in the receipt of regular 
profits sufficient to satisfy a reasonable mind , and entirely 
contented with my then situation and future prospects. I 
had no expectation, much less any desire of being again 
placed at the head of the institution, particularly at that 
time, when the Bank had in some measure lost its former 
standing; when the salary ($2,000 per annum) was no ob- 
ject in comparison to the profits which ] was sure to realize 
from my regular business, and when I could not but be 
sensible, that by returning to the Bank and taking the 
place of its first officer, I should have to encounter difficul- 
ties, assume responsibilities and perplexities, which were 
neither necessary to my condition in life, nor obligatory 
upon me, considering my situation, and my then entire 
separation from the institution. It may be here asked, 
what inducement was there for my accepting a situation 
where I had so many embarrassments to overcome ? 

This is a natural, and seemingly important question, 
considering my condition in life, my prospects in business, 
and my entire independence of all monied institutions; 
it may appear paradoxical that I should resign a lucra- 
tive and regular profession, and take to one in which 
I was sure to meet with difficulties and responsibilities, 
and assume the task of reinstating the institution in its 
former prosperity, and pristine public confidence. 

In answer, however, I have to say that I had a pride of 
opinion, a laudable ambition to effect these desirable ob- 
jects, and that I had a confidence and an ardent desire to 
bring about the ends so devoutly to be washed ; that I was 
also impelled to this undertaking by the earnest and unre- 
mitted solicitations of gentlemen in whose opinions I had en- 
tire confidence, in whose views I placed great reliance, and 
to whose wishes I yielded, as w^ell from the respect enter- 
tained towards them, as from what I then considered co- 




gent and justifiable reasons. The detail of the manner 
and the reasons why I was finally induced to accept of the 
Presidency of the F ranklin Bank, as far as they relate to 
the advice and interference of friends and parties interested, 
can be more fully explained and entirely verified by Lynde 
Gatlin, Thomas Buckley, Charles Wilkes, G. A. Worth, 
Nathaniel Prime, Samuel Ward, Timothy Dewey, Augus- 
tus H. Lawrence, Seixas Nathan, and many others not 
connected with the Bank, by all the then Directors,* and 
many of its stockholders, and dealers. 

1 was elected Director and President on the 13th of 
December, 1826, and commenced my functions on the 
following day. In the beginning of my duties, my first 
inquiries were to ascertain the actual condition, situa- 
tion, and monied concerns of the institution. In this work 
and research I devoted my undivided time. For several 
days the result of my inquiries alarmed me exceedingly. 
1 had hoped that the rumours and suspicious afloat had 
been magnified and augmented. I was induced to be- 
lieve they had been exaggerated, from a knowledge of the 
affairs of the institution when I oeased to be a Director ; 
as well as from the absence of any knowledge of losses which 
had taken place in the interval, as also the strong assur- 
ances of the Directors and Officers of the institution, and 
the solemn protestations, and belief of my friends out of 
doors. 

My anxiety and my fears on this occasion, I will not 
attempt to describe. They gave me at the time, feelings 
never before entertained, difficulties never before seen, and 
responsibilities 1 shuddered to encounter ; my apprehen- 
sions and alarm agitated and troubled me more than all 
other difficulties which had ever beset me. I communi- 
cated my views and ideas to some of the Directors ; re- 


* Perhaps I ought to except Robert Bartow, then Vice-President and Di- 
rector ; for this gentleman exerted his utmost to become President himself \ 
and was grievously disappointed, although he testified that he informed me 
the Bank was insolvent in the summer of 1826. 

B 


monstrated with them for having placed me in such a state 
of thraldom and hopelessness; every effort of my mind 
was put into full operation to subserve the best interests of 
the institution ; every possible research, and every con- 
ceivable expedient, which my judgment could direct, was 
exerted to the utmost stretch to benefit this institution, 
where 1 had permitted myself improvident ly to be placed 
at its head. Mismanagement , improvident loans, irregular 
transactions, false books, and a total disregard to the fun- 
damental rules of Banking and regular successful business, 
was frightfully apparent every where ; and where to begin 
correction, how to arrest the mismanagement, and more 
emphatically, how to save the institution from immediate 
ruin, became matters of consideration in my mind of mo- 
men tons concern. 

The trouble which T encountered in my daily official 
occupation, preyed upon my thoughts, and perplexed me 
exceedingly. The difficulties I had to encounter on each 
succeeding day, caused me disquieted hours with my 
family, and restless nights. My whole attention, my best 
endeavours, my most anxious solicitude, were the concerns 
and difficulties of the Franklin Bank. I interrogated the 
Clerks, questioned the Directors, counselled in a proper 
and secret manner with friends, what was the best course 
to be pursued. During this period of anxiety and solici- 
tude, no man can conceive the misery I endured; — the 
only relief I received; — the only resolution 1 assumed, 
was in consequence of my ardent wish to restore the Bank 
to solvency and credit, and the counsel and advice which 
I received from kind, intelligent and disinterested friends 
to persevere to the end. 

With all my exertions and strenuous efforts, after a few 
days experience, I resolved to take the opinion and coun- 
sel of those, whose habits of life and course of business, 
had made their counsels of great consequence and import, 
to relieve me from my temporary embarrassment and per- 


11 


In looking around for such men, the standing of Lynde 
Ccitlin indicated the man whose experience and charac- 
ter was the person to be selected in this instance. Ac- 
cordingly, on the 17th of January, 1827, [ had an icter- 
vievV with that gentleman, having first imposed upon him 
the necessity, and obligations of secrecy. Explanations of 
the difficulties of my situation, and the embarrassments of 
the institution were made. He received me with cour- 
tesy and kindness, heard my difficulties with patience, 
gave his advice with candour and intelligence. About 
the same time and previously, I consulted with Samuel 
Ward, Jr. and others in mercantile life; also Benjamin 
Clark, Silvanus Miller, and J. O. Hoffman, Counsellors 
at Law. Upon each of these gentlemen, I imposed the 
most solemn obligations of secrecy, and each of their 
opinions were solicited and procured separately and apart. 
The same representations and expositions were made to 
each, without any one of them knowing, or suspecting that 
the same exposure had been revealed to any other person, 
or that any other person had given counsel, or advice in 
relation to the subject. 

The interest of the Bank, as well as my personal re- 
sponsibility and obligation, created in my mind an imperi- 
ous necessity that all these interviews, and each of these 
consultations, should be kept a profound secret, and be 
made separate and apart from each other; and it is a re- 
markable fact, and one which gave me great confidence, 
that each and every one of the persons consulted on these 
occasions, gave me substantially the same counsel and 
advice, the substance of which was — “ We see the diffi- 
culty, the danger, and the embarrassment in which you 
are placed, and which you have to surmount, but you 
must exert yourself to the utmost of your power, and de- 
vote yourself, soul and body, to the interests of the institu- 
tion ; extricate it from its thraldom and embarrassment if 
possible; continue to retrench your discounts; narrow 
your circulation ; lessen your expenses ; introduce and en- 
force order and regularity in business ; do not permit things 


12 


to grow worse than when you found them, and render 
them better as far as may be in your power. If you can- 
not save the institution from ultimate ruin, you will have 
the satisfaction, and the consciousnessof not having brought 
about the misfortune by your negligence, fraud or misma- 
nagement, and the blame and censure of the calamity can 
never be justly attributed to you.” That all these per- 
sons, with others, urged with force and earnestness, never 
to suspend payment of the Bank, or enjoin it, so long as I 
felt assured that its affairs were not growing worse, or 
particularly if they were growing better, and I had rea- 
sonable belief, that with prudent care the debts might be 
redeemed. 

After the best consideration which I could give the sub- 
ject, and a continued consultation with the most intelligent 
friends and competent advisers I could select, my anxie- 
ties and doubts were m some measure mitigated, but ne- 
ver removed ; the accumulation of perplexities and em- 
barrassments seemed at times (to my mind) to be insur- 
mountable, and but for the intervention of friends, their 
kind counsel and ardent expressions to the contrary, ] 
should have immediately resigned my office in despair, and 
had actually written my resignation. The Bank would 
then have fallen, as a necessary consequence, in one fell 
swoop. What would then have been the state of things ? 
How far persons interested in the institution would have 
suffered, or what blame, censure or even violence 1 might 
have encountered, 1 leave the reader to imagine, the effect 
I cannot , and therefore will not attempt to describe. 

The reader will have noticed that the re-commencement 
of my official duties took place on the 13th day of Decem- 
ber, 1826, that I continued that duty until the 28th day of 
May, 1828 ; and here I beg leave to remark that during 
this time of one year five months and fifteen days, I signed 
no bills * for the institution, and that consequently there 


* Many inquiries were made of me respecting the institution, the value 
of its stock, &c. I studiously avoided the answer, or giving encouragement’ 


18 

was not a single Franklin Bank bill, bearing my signa- 
ture, in the hands of any bill-holder, signed by me during 
that period, and at the time of the injunction. The salary 
which I was to receive as President, was fixed at $i2000 
per annum. Shortly after I entered upon my official du- 
ties, I gave notice to the Directors that 1 should not receive 
or charge any thing for my services, that whatever 1 did, 
and so long as 1 remained President, they should have my 
time and best exertions, but no compensation would be 
received, and accordingly for the term which I officiated 
as President, I have never received or charged any sum 
whatever. I came to this determination because I saw 
so many difficulties ; and my intention was not to be paid 
even if the institution was saved, and would cheerfully 
have persevered if I could have accomplished the object, 
to the end of the Charter, gratuitously. 

I say most frankly that I did not intend to lose money 
by accepting the office, and I can say with equal truth, 
and entire confidence, that I did not expect or calculate to 
make money ; but though I did not intend it, I have lost a 
very large amount in consequence of accepting the 
office of President, and that I have not made or saved 
money in any way out of the institution, is already, or will 
hereafter be made very evident. 

It is proper now to remark that independent of the dif- 
ficulties which I have enumerated, and the consultations 
had to and with friends and counsel, l made an early re- 
cord of my apprehensions, anticipations, and discoveries of 
facts in relation to the Bank, immediately after my induc- 
tion into office, and twelve days after I had taken upon 
myself my official duties, (during which period I had la- 
bored most incessantly to discover the true situation of the 


to any, but repeatedly said, when you see new bills, with my signature, take 
that for a signal that all is right. 

I never solicited or encouraged any person to transact or continue busi- 
ness with the Bank after my re.turn. 


14 


institution,) 1 reduced to writing, my protest in regard to 
such researches, and affirmed thereto, the original of which 
I left with Robert Bogardus, then one of the Directors and 
Counsellor for the institution ", that besides that protest I 
kept a regular journal of the daily difficulties and occur- 
rences at the Bank, for my guidance and protection ; the 
protest may be seen at the office of James Kent — the jour- 
nal is open for inspection, at all times, at my office, No. 7 
Cherry-street ; presuming that all persons interested may 
not be inclined, or for some other reason may not have an 
opportunity of seeing such protest and journal, I copy into 
this publication, such extracts from both, as are essential 
on this occasion, leaving the reader at liberty to refer to the 
originals for the entire and extended remarks made in those 
documents, it being my wish that every thing should be 
fully exposed to public view and rigid scrutiny. The pro- 
test bears date, and was made and delivered on the 25th 
day of December, 1826, from which the following extracts 
are made. The journal was made at intervals, in a de- 
sultory manner, at such times as the writer could com- 
mand ; it was shown at various periods of my administra- 
tion of the Bank, to different persons, copious extracts from 
which are also subjoined. 

EXTRACTS FROM PROTEST. 

I, Samuel Leggett, of the City of New-York, hereby make 
known, to all whom it may concern, that after much importu- 
nity of many respectable gentlemen, and of the Directors, with 
great reluctance consented to accept the office pf President of 
the Franklin Bank, purely and solely in the hope and belief of 
being able to resuscitate and restore it to a state of soundness 
and respectability. 

This hard and laborious task I undertook the more willingly, 
on receiving the assurances of Henry Post, Jr. President, and 
Robert Bartow, Vice President, that there was no wrong doing, 
and that the Bank was growing stronger and stronger every 
day; and upon the assurances of John H. Hill, that he had 
examined the state of the Bank, and believed the property was 


there, and thought there was no difficulty in going on and again 
re-establishing the institution. 

But from the examination I have made, finding things so dif- 
ferent from what I supposed, I have become very much alarm- 
ed and discouraged, and hesitate whether 1 ought to suffer the 
Bank to continue its business, or to stop payment, or to conti- 
nue on and close up the concern as soon as prudence will per- 
mit, or whether I shall encourage the Directors to continue on, 
and resuscitate if possible. 

I see great difficulties on every hand, and which to choose, or 
what to do, I do not know ; and what course I shall, or ought 
to pursue, I cannot tell. 

I believe however it to be my duty, to protest against the fol- 
lowing circumstances that I have discovered in the Bank, and 
against all others of a similar nature, that I may hereafter dis- 
cover, declaring my utter ignorance of the Bank owning any 
of its stock while I was formerly in it. 

I further protest against the conduct of the said Robert Bar- 
tow, or some other person to me unknown, in procuring from 
a certificate of deposit, to the Tradesmen’s In- 
surance Company, for $20,000, payable on the 1st day of May 
next, with 6 per cent, interest, when in fact no such deposit ap- 
pears on the books at the time* and against the conduct of 
for granting such certificate.* 

I also protest against the conduct of some persons to me un- 
known, for a charge of $20,000 to the contingent account of 
the Bank,f and a credit for the like sum afterwards, without 
any deposit appearing upon the books of the Bank at the time. 

And I further protest against a check on, and paid by said 
Bank, for $20,000, drawn by Robert Bartow, Vice President,! 
and charged to the account of Henry Post, Jr. President, on the 
17th August, 1826, and also against a credit of $20,000 to the 


* This is an error, there was a deposit made on the same day, but it was 
a fictitious one. a wrong date was given me of the certificate, by John II. 
Hill, which led to this error. (See extracts of journal.) 

f This was not only charged, but paid. 

t I have the original check in my possession, the ledger in Bank will 
show how the credit was made. 


16 


said account, on the 18th November, 1826, without any deposit 
appearing on the books «<f the Bank at the time. 

And I again most solemnly protest against the excessive 
amounts of discounts taken by Robert Bartow, or R & G. Bar- 
tow, or some of them, and the heavy amounts their accounts 
have been overdrawn.* And also against the excessive and 
enormous discounts made by the said Bartow, while Vice Presi- 
dent, and afterwards as Director, for his own use, without the 
knowledge of the Directors. And I further protest against the 
discounts and loans generally, that have been made by the said 
Henry Post, Jr. and Robert Bartow, as being, imprudent, exces- 
sive, and unwarrantable, without common judgment, or any re- 
gard to the interest of the institution, more especially those 
made to their immediate friends and family connections, by 
which the Bank has lost a large sum of money, and will proba- 
bly realise a greater loss than has yet appeared, by which im- 
prudence the Bank has been brought into difficulties and dis- 
repute ; although the Directors, ignorant of the cause, in order 
to relieve the institution, have committed themselves for large 
sumsf of money, with a spirit and liberality that does them 
credit. 

And lastly, I solemnly protest against the conduct of Robert 
Bartow, in procuring from Janies A. Burtus, his notej for 
$30,000, endorsed by Henry Astor, and discounted in the Mer- 
chants’ Bank, as an accommodation to the Franklin Bank, 
taking at the same time 315 shares of Gas Stock, the property 
of the Franklin Bank, as a collateral security, when at the 
time the loan was for his own private account, or the account 
of R. &. G. Bartow, to make good his or their overdrawing in 
the Franklin Bank. 

- - — * * 

* Overdrawn at one time, as I was informed by the book keeper, about 
$60,000. 

+ About $350,000. 

t James A. Burtus and Henry Astor arc referred to for this transaction, 
and can probably detail the way and manner in which they received securi- 
ty ; the reader will get a partial explanation by referring to my extracts 
from journal, 2d mo. 23d, 1827. 


17 


Now it may well be seen that I have great cause for alarm, 
fearing I do not know the whole. 

What the end of things is to be Providence only knows, but 
how I am to act, what I ought to do, is a question so momen- 
tous that I cannot determine. 

I am getting such securities for the different items as I can,* 
and shall continue to do so, without extending the Bank, until 
I determine the course to pursue. 

Whatever that may be, whether stoppage, closing up, or going 
on, I shall endeavor for the right and honorable decision in all 
things, to the best of my knowledge, believing, that as I act in 
that spirit, I shall be supported in the conflict by all persons in- 
terested, and by the public at large. 

Thus done and protested, and made known by delivering the 
original to R. Bogardus, the counsel and attorney of the Board, 
this 25th December, 1626. 

SAMUEL LEGGETT. 

December 1826. — Received from Samuel Leggett, the 

original of which the above is a copy. 

(Signed) R. BOGARDUS. 

The protest of which this is a copy, was shown to me on the 
24th December, 1826. 

(Signed; TIMOTHY DEWEY. 


1827, 1st mo. 2d. — Communicated the contents to J. A. Burtus, 


5th. 

Do. 

Do. 

1. Corse, 

6th. 

Do. 

Do. 

J. Palmer, 

ct 

Do. 

Do. 

H. Astor, 




Directors. 

(C 

Do. 

again to Joseph S. Shotwell, 


a friend. 

All approved ©f the measure T adopted, and agreed that si- 
lence was best, and to go on and get security as fast as I could, 
and expose nothing. 


S. LEGGETT. 


* All the defalcations were settled except Robert Bartow’s check, the ex- 
tracts from my journal will give the detail. 

C 


18 


EXTRACTS FROM JOURNAL. 

18*25, 8 mo. 13 th . — Resigned the Office of President of the 
Franklin Bank, and took no part in its business since, in any 
way whatever. 

1826, 12 mo. 10///. — Consulted with Lynde Catlin, Charles 
Wilkes, George Newhold, Thomas Buckley, G. A Worth, Na- 
thaniel Prime, Samuel Ward, Jr. Seixas Nathan, Robert Lenox, 
J. O. Hoffman and others, on the subject of taking the Presi- 
dency of the Franklin Bank, and encouraged me with a hope 
they would support me in it. Therefore, 

1826, 12 mo. 13 th . — I again took the Office of President 
of the Franklin Bank, and a sore thing I find it, and how to 
heal it I do not know, but will endeavour for the right measures. 

1826, 12 mo. 22. — Robert Bartow told me that the note of 
James A. Buftis, endorsed by Henry Astor, due this day, and 
discounted at the Merchants’ Bank, was to make good his over- 
drawing in the Franklin Bank 

The above note was renewed for $10,090, in two notes of 
$5,000 each, 30 and 60 days. 

This is a copy of the original, found in possession of Wil- 
liam R. Cooke, in his hand-writing, viz : 

“ Charge contingent account by order of Henry Post, Jr. and 
R. Bartow, July 19th, $20,000 given to John H. Hill.” (See 
original in Bank.) 

John H. Hill der ies any knowledge of the above. 

1826, 12 mo. 24///. — John H. Hill told me that the certificate 
of deposit for $20,000 issued by the Franklin Bank to the 
Tradesmen’s Insurance Company, was issued without any depo- 
sit being made, and when he found it out, drew a check on the 
Hoboken Bank for $20,000 to make it good, and said the cer- 
tificate had been given in May last. 

The above he has confirmed to me repeatedly; which s.id 
check overdrew the Hoboken account, and has so remained ever 
since. (See the account of William Munn, Cashier in Bank.) 

From 13 th to 25 th . — Consulted with Timothy Dewey, and re- 
ported to him all I discovered in the Bank, and of the propriety 
of stopping or winding up the institution. He recommended 
to o on and ifet security, to enter my protest and deliver it to 
Bogardus, which 1 read to him before it was delivered to Bo- 


gardus, and to do nothing in a hurry, or under excitement. 
That he was satisfied the public and those interested would jus- 
tify me in that course. 

SAMUEL LEGGETT. 

The above is correctly stated. 

TIMOTHY DEWEY. 


The following accounts created in the Bank, upon which to 
get discounts, &c. &c. &c. ! ! ! 

1. Robert and George Bartow. 

2. R. and G. Bartow. JNo. 2. 

3. William A. Bartow. 

4. John H. Hill, Cashier. 

5. John H. Hill. 

6. Robert Bartow. 

7. Miscellaneous. 

P. S. It is a curiosity to examine these accounts. 

1826, 12 mo. 2 1th. — Showed my protest to Joseph S. Shot- 
well ; he approved of my making it : told him all 1 knew of the 
situation of the Bank : he saw so much difficulty that he could 
not or would not advise me what to do. 

1827, 1 mo. 5th 6th. — Confidentially communicated the 

contents of my protest to Directors J. A. Burtus, Israel Corse* 
James Palmer, and Henry Astor. They all approved the in a- 
sures I adopted, and agreed that silence was best, and to go on 
and get security as fast and as well as 1 could, and expose 
nothing. 

S. L. 


COPY. 


1 mo. 9th, 1827. 


Robert Bartow, 

I will now draw thy attention to the settlement of the 
Tradesmen’s Certificate for $20,000 of this Bank, for which 
there appears neither deposit to be made at the time , nor secu- 
rity held by the Bank for it. 

I forbear making any remarks on this subject ; my only wish 
is to have it arranged in an amicable and just manner, and 
therefore hope and beg it may be promptly attended lo. 

Respectfully, &c. 

S. LEGGETT, Pres’t. 


20 


Same day . — I delivered the copy of the above to Robert Bar- 
tow, in person. He replied that be would settle it, and pay it 
in a few days. 

S. L. 

1 mo. 10/A. — He promised to settle it to-morrow. 

Gave the Directors to understand, that in the present state of 
the Bank, 1 should not receive any salary as President. 

S. L. 

1S27, I mo. YHh . — Consulted with Lynde Catlin — represented 
to him the state of the Bank, and that wrong- things had been 
done, not to be named ; and informed him that my prospect was, 
to wind up the concern. He approved of my course, and ad- 
vised me to carry a bold front; appear at ease even if my feel- 
ings were bad, and proceed to get securities, as well and as fast 
as \ could, aud that he was ready at all times^ to give me ad- 
vice, &c. 

S. L. P’t. 

Franklin Bank , January 27, 1827. 

Robert Bartow, 

Respected Friend , 

I must now for the last time ask of thee security for the 
Tradesmen’s Certificate of $20,000. I am worn out with re- 
ceiving promises that are not performed, I have other duties 
to discharge relative to it, and whatever are the consequences, 
they must be performed. Hitherto I had hoped it would be ar- 
ranged without any serious difficulty arising from it, and if im- 
mediately attended to, much that will be disagreeable may be 
avoided. 

This Bank is not bound to pay that certificate, and they will 
not pay it, unless the property is furnished them to do it, of 
which, 1 shall in justice to the Tradesmen’s Insurance Compa- 
ny and myself, notify them, in order that they may take such 
measures as may appertain to the case, in obtaining security. 

Thy friend, 

S. LEGGETT. 

i 

The above produced me the guarantee of the Hoboken Bank, 
to pay said certificate. (See original on file.) 


S. L, 


1827, 2 mo 23 d . — Discovered an erasure had been made in 
the collection register of the Bank, ol the name of William 
Munn, Cashier, lodging 16 notes for collection, and receipted 
to him on the 13th December, 1826, and altered to the name of 
James A. Burtus, J\o. 2. On inquiring of the Cashier and Dis- 
count Clerk, it appears that the erasures had been made by the 
orders of Robert Bartow, and that he, Bartovv, had pledged 
those notes to James A. Burtus, to secure him for his name 
lent to Bartow, without the knowledge of Munn, Cashier, as he 
IVlunn now says, and Munn also says, that all the other notes 
now lodged in the name of James A. Burtus, No. 2, are his pro- 
perty, and were delivered to Bartow, to have entered to his, 
Munn, Cashier’s credit, in the Franklin Bank. The other 
notes were lodged to Burtus, No. 2, on 24th January, 1827, and 
3d February. See collection register. Whole amount $8677 10. 

Fraud, Fraud, when will it end. 

SAMUEL LEGGETT, President. 

N. B. James A. Burtus, William Munn, Cashier, and John 
FI. Hill, will confirm this. 

Friday ) February 2, 1827. 

Samuel Leggett, Esq. 

Dear Sir , 

I am aware that the course you are adopting in the discharge 
of your official duties, you are governed entirely by a desire to 
promote the interest of the Bank. No one can be more sensi- 
ble of that than 1 am, and therefore I feel much embarrassment 
in requesting you to suspend in reference to the lioboken Bank, 
any measures that would have a tendency to injure them in 
their credit, either out of doors, or within the walls of this Bank. 
I am sure that a course, which under other circumstances, 
would be right and proper, would in this case be attended with 
serious consequences, not only to them, but perhaps to this 
Bank, and undoubtedly to me in a ver y peculiar manner. 

1 submit therefore to your good judgment, whether it be not 
more adviseable at this moment, to do nothing that would crip- 
ple them. Insist if you please, that they keep their account 
good, make them by all means afford the Bank ample security 
for their indebtedness, and take any other steps you may deem 
proper, privately, to keep them right. But I do earnestly in- 


22 


treat you not to cast them off at present, for considerations of 
the greatest urgency to this Bank and myself, as well as 
others.* • 

I make this a personal favor, and I am sure I will be willing 
to do all in iny power to bring this matter into a proper direc- 
tion, and to secure the Bank from any loss.f 

Your obedient servant, 

J. H. H. 

1827, 3 mo. 5th — This day one post note of the Hoboken 
Bank, for $5000, is due, which was paid to me by Bartow, to 
make good the defalcation in contingent account, which with 
other funds amount to $20,000. YV. Munn, the Cashier of 
that Bank, states that the above post note, together with another 
coming due the 5th April, for $5000, was handed to R. Bartow 
for the purpose of having discounted for the use of that Bank, 
but R. Bartow applied them to the payment of his own debts 
in the Franklin Bank ! ! ! 

1827, 3 mo. 10M. — Exhibited this book, and read the same 
to, and consulted with Benjamin Clark, and represented to him 
the situation of the Bank — expressed to him my belief that the 
Bank could with due care, pay its debts, but in the event of my 
being mistaken, expressed my fears that I might not be justified 
in doing business as a Bank, &e. &c. He advised me by all 
means , as long as I believed it able to pay its deposits and ciicu- 
lation , not to sh p, but go on as 1 had done, securing and col- 
lecting its debts, but as soon as I discovered there might be a 
deficiency, to cause myself to be en joined. 

B. C. 

The above B. C. is the proper hand-writing of Benjamin 
Clark. 


* I did not comprehend the meaning of those strong terms when this 
was received but l think the reader will understand it, by the perusal of my 
narrative, without my help. 

S. LEGGETT. 

t Perhaps I ought to say this letter was founded on my watchfulness over 
the account of that Batik, w! ose bills were redeemed at the Franklin Bank, 
and (or which redemption, no deposit was kept, but the account continually 
overdrawn and my determination was to either stop redeeming, or that the 
funds should be deposited for that purpose ; the reader will find more on this 
subject before he gets through. 


S. L. 


28 

Qmo. Wth . — Consulted J. O. Hoffman — read to him my pro- 
test, and all other papers, he advised the same course, and 
agreed in opinion with Benjamin Clark. 

3 mo. 12. — Consulted with Silvanus Miller — read to him my 
protest and documents, he advised the same course, and agrees 
in opinion with Clark and Hoffman. 

1827, 3 mo. 10/7*. — Called upon Samuel Ward, Jr., of the 
firm of Prime, Ward. King and Co. who 1 have repeatedly con- 
sulted before; read to him my protest and all my other docu- 
ments; represented to him the state of the Bank, and also 
showed him the statement book of the Bank ; opened to him 
my prospect of winding up the institution ; stated to him the 
securities I had effected, and the probability that much more 
would be effected; informing him of all that I knew. He ap- 
proved of the course l had pursued, and advised me to go on; 
but that whenever I found the load greater than I could bear, 
to consult with the stockholders, and cause the Bank to be en- 
joined, and especially to procure a book, and keep memoran- 
dums of all my acts and proceedings. 

S. L. 

18* 7, 3 mo. 1 Uh . — This should have been under date of lmo. 
5th, 1827, but I omitted (by forgetting.) 

On that day, I received under cover of a letter, $10,000 in 
Bank notes, and I also received two post notes of the Hoboken 
Bank, at 60 and 90 days, for $5,000 each, from Robert Bartow, 
making altogether $20,000, to make good the fraud in the con- 
tingent account for that amount. 

I enclosed the whole with the letter, under a sealed cover, 
directed to Samuel Leggett, President of the Bank, and placed 
the same in the second teller’s trunk for safe keeping. (One 
post note became due on the 5th — on the 8th it was paid.) 

I placed the Franklin Bank notes in its place and sealed all 
again, and placed as before for safe keeping for the Bank. 

(See the certificate of James Flinn, Second Teller.) 

S. L. 

Franklin Bank , January 5 fh 9 1827. 

This is to certify, that Samuel Leggett, President, lodged 
this day with me for safe keeping, under a sealed cover, directed 
to Samuel Leggett, President of the Franklin Bank, ten thou- 


sand dollars in the notes of this Bank — $10,000 

And two post notes of the Hoboken Bank, at 
60 and 90 days, from 5th January, 1827, 
for $5,000 each, - 10,000 


$ 20,000 

JAMES FLTNN, Jr. Teller. 
1827, March 8th . — One of the above notes being paid, five 
thousand dollars in notes of this Bank was substituted therefor. 

JAMES FLINN, Jr. Teller. 
1827, April 20th . — The other post note was paid, and five 
thousand dollars of the .notes of this Bank substituted therefor; 
making the whole twenty thousand dollars, now in the said en- 
closure for safe keeping, s ibject to the orders of the Board of 
Directors. JNew-York, April 20, 1827. 

JAMES FLINN, Jr. Teller* 
1827, 3 mo. 10M — The Committee (Henry Astor, James A. 
Burtus, and Garret Furman,) on examination of the state of the 
Bank, by Garret Furman, reported the state of the Bank to be 
such as to warrant a dividend being made, and he moved that a 
dividend be made, which was seconded by James Palmer, and 
opposed by Samuel Leggett and Israel Corse, on putting the 
question, four voting in the affirmative, and four in the nega- 
tive, viz: 

Affirmative Palmer, Negative Leggett, 

Furman, Burtus, 

Bartow, James, 

Youle. Corse. 

(See minutes and proceedings of Bank.) 


• I certify the above packet of money, as there described was in my trunk 
when I lelt the Bank, in possession of John H. Hill, Agent for the Receiver 
and lhat the same was a part of the circulation of the Bank. 

New-York, February 8, 1831. 

JAMES FLINN, late Teller. 

Note. The above sealed packet contained the original letter, under cover 
of which $10,000 was received and my memorandums, from whom it was 
all teceived and on account of what defalcations The receiver informs 
me he cannot give any account of it. The papers also bear the initials of 
Henry Astor. 


95 


1827, 3mo. l3riL — The next meeting of Directors, so confi- 
dent were they of a sound state, that Garret Furman and James 
Palmer again moved for a dividend, which was strongly advo- 
cated by them and George Youle, and opposed by 8. Leggett 
and I. Corse, and after full discussion, on putting the question, 
four affirmative and four negative. 

Affirmative Astor, Negative -Leggett, 

Palmer, Corse, 

Furman, Buhtus, 

Bartow.* James. 

The above proceedings are recorded in the books of the Bank, and the re- 
port of the committee in detail lodged with the cashier, which may be im- 
portant to refer to hereafter. At any rate, that report and those proceed- 
ings, may go to justify me in going on with the Bank ; for surely, if a Bank 
is able to make dividends, nothing but going on should be thought of 

SAMUEL LEGGETT, Pres’t. 

1827, 3 mo. 1 6th . — This day exhibited to IL Astor, James A. 
Burtus, and Garret Furman, the committee of investigation of 
the Franklin Bank, this book, with all the original papers in 
my possession. They approved my measures. 

S. L. 

1827, 3 mo. 17 th . — Heretofore urged the Board on the sub- 
ject of reducing expenses, and the number of clerks, and recom- 
mended the removal of which 

they have now under consideration. 

1827, 3 mo. 19 th . — Exhibited this book, with all my docu- 
ments, to William Seaman, the notary of the Bank, (having 
previously informed him of the different defalcations.) He ap- 
proved the measures I have taken, and advised me to continue. 

S. L. 

1827, 37no. 20th . — I spent the evening of this day with Sa- 
muel Ward, Jr. at his house. He confirmed me in going on 
with the Bank as I had done, and believed in the end 1 should 
he justified. 

SAMUEL LEGGETT. 


* This man testified on my trial, that he told me in the summer of 1826, 
that the Bank was insolvent. The reader will make his own comment on 
that oath, and the above vote for dividend. 


n 


Smo. 20 th. — J. O. Hoffman, as counsel and friend, advised me 
peremptorily not to stop the 13ank, but to go on as I had done. 

S. LEGGETT. 

1827, Smo. mk .—' This day discovered that the loss sus- 
tained by the Bank would probably be near $40,000 by the 
a###*'##*. When I took charge of the Bank, Robert Bar- 
tow assured me it would be about $15,000. My heart is sick, 
and my soul is sorry: what in the name of God will things come 
to, and who is to be believed? It seems as if 1 am surrounded 
on every side by villains, and that all around me have conspired 
for evil. 

SAMUEL LEGGETT. 

1827, 3 mo. 20 tli . — The accounts of the Hoboken Bank vexes 
me, being continually overdrawn, instead of keeping a regular 
deposit for the redemption of their notes. 

I have tried my best to have it otherwise, and have with much 
labour, effected a lodgment of notes for collection as security. 
I dare not stop redeeming their notes, because if I do, they must 
stop ; and if they stop, Bartow’s must, stop ► and iu that case, the 
Franklin Bank will lose largely, more money than they will by 
the course l have pursued. I hope this will be a justification 
for my procedure in this matter. I have heretofore represented 
this account to the committee ; they, good easy souls, approve 
every thing that is done by me. But, alas! I stand alone,’ and 
none amongst the Directors on whom I can rely for efficient ad- 
vice. I will, however hard the task, make the attempt with my 
own judgment, and the advice of counsel and friends, to close 
up in the best way I can, and proceed on for that end; and 
hoping all 1 have done will be duly appreciated, come what will, 
by the wise and good. 

SAMUEL LEGGETT, Pres’t. 

1827, Smo . 2 Sth . — All mv friends and counsel agree in my 
going on, but I do it in fear and trembling, and with a wound- 
ed and mortified spirit. I hope it will be found right, but I 
am filled with fears and doubts as to the result, hoping for the 
best, fearing the worst, and supplicating that I shall be justified 
by all honest men, for he who rides the whirlwind, and guides 
the storm, knows the purity of my intentions. 

SAMUEL LEGGETT. 


Yet from the frequent examinations and estimates of the si- 
tuation -of the Bank, it does look to me as -though 1 should be 
able to wind up, pay all the debts, and leave something for the 
stock- holders. 

SAMUEL LEGGETT. 

This day discovered that $9957 16, were discounted by John 
II. Hill, for R. Bartow, and the gross amount given him, with- 
out deducting the interest* 

1827, ‘3mo . 23 d. — Called upon Garret Furman, one of the 
committee — represented to him the state of the account of \Y. 
Munn, Cashier, and desired him to bring the subject before 
the Board, and take their order upon it, and also to appoint a 
committee to attend to the collection of protested notes. 

SAMUEL LEGGETT, President. 

1827, 3 mo. 24 th . — Represented to the Board of Directors — 
present, Astor, Furman, Palmer, Burtus, James, and myself, 
the state of the accounts of W. Munn, Cashier of the Hoboken 
Bank, and the trouble it gave me, being continually overdrawn. 

Had the ledger and other books relating to it, brought up into 
the Directors’ room, and also stated to the Board, the measures 
1 had pursued in obtaining from that Bank, securities, by a lodg- 
ment of notes for collection, to the account of William Munn, 
No. 2, to be considered as collateral security for any claim the 
F. B. might have on Hoboken Bank. 

SAMUEL LEGGETT, President. 

I now feel clear of this account in ease of loss, and leave it to 
the committee to do as they think proper. 

1827, 3 mo. 23th . — Exhibited this book with all my papers 
and documents to James Palmer, one of the Directors, lie ex- 
pressed himself satisfied and pleased with what 1 had done, and 
fully approved the measures I have adopted. 

SAMUEL LEGGETT, Pres’t. 

3 mo. 24 th . — Again consulted Silvanus Miller, he advised me 
by all means, as long as I thought I was bettering the condition 
of the Bank, to continue on. 

SAMUEL LEGGETT, Pres’t. 


* Done previous to my coming in. 


1827, 3 mo. 26.— This day exhibited to R. Bogardus this 
book, (who has been absent to Albany, as a Senator there,) he 
approved of what I have done. 

S. LEGGETT, Pres’t. 

1827, 3 mo. 26. — To do, or not to do, that is the question. 
Shall I cause the Bank to be enjoined'? What shall 1 do? 
What ought Ido? Who can tell me? If I knew what was 
for the best, I would do it. But alas ! No mortal can tell 
that — I am depressed and greatly discouraged , and there is none 
to help me — yet I certainly am acting under the advice of coun- 
sel and other gentlemen of the first respectability. If I do the 
best I Know, and my own conscience approving, and the Lord 
of Hosts justifying, who dare call it in question. 

S. L. 

3 mo. 27th . — Exhibited this book with all my papers, to Tho- 
mas Freeborn, one of the Directors, he approved of what I had 
done. 

1827, March 28. — I have carefully examined all the entries 
in this book thus far, and here state, that the substance of them 
all, and the original protest and documents, were ehown to me 
by Mr. Leggett, as they were discovered. 

TIMOTHY DEWEY. 

I, Samuel Leggett, of the City of New-York, do hereby so- 
lemnly declare, affirm and say, that the several entries, memo- 
randums and statements made in this book by me, truly state the 
facts and circumstances therein set forth, as they were disco- 
vered, and that they are made from the origina] documents, 
bearing the dates set forth, and minutes made by me at the se- 
veral times herein stated, and that from prudential motives to 
serve what I believed to be the true interest of the Bank, I did 
not lay the discoveries of fraudulent acts, before the Directors, as 
a Board, but consulted with Robert Bogardus, the attorney and 
counsel of the Bank, and one of the Directors, and one of the 
committee of investigation at the time, and that shortly after- 
wards I communicated the facts to the Directors, individually , 
and I am confident, in pursuing this course, a large amount of 
money and securities have been obtained to the Bank, that 
would otherwise have been lost, especially if a public exposure 
had been made. 3 mo. 28 th, 1827. 


SAMUEL LEGGETT. 


1827, 3 mo. 30 th , — John H. Hill said the origin of the 
$20,000 taiven from the contingent account, was to pay two 
sums of $10,000 each, which and ****** had char- 

ged to the Hoboken Bank, without his knowledge, and that 
when he found it out, they caused to be drawn from contingent 
account, $20,000, to make it good. I then inquired of him 
about the check of R. Bartow, Vice President, for $20,000, he 
said he knew of no such check, I told him 1 had it in my pos- 
session, and showed it to him, he appeared surprized, and said 
he hoped it would not be found wrong, and he concluded it was 
to make good the $20,000 in contingent account. 1 told him I 
was afraid it would be found another robbery, for that the credit 
to contingent account was made good by a tick et of a different 
date, which 1 had seen amongst the papers. (See my protest.) 

H. 1 ost tells me he knew nothing of the check of Bartow, as 
Vice President, for $20,000, on 18th August, 1826, until after 
it had been charged to Henry Post, Jr. President’s account, and 
when he discovered it, he made a ticket, giving credit to this 
account of $20,000, and charged Bartow’s account with it, on 
the 18th November, 1826, and when Bartow dsicovered it, he 
ordered it erased from his account, and it now stands in that 
situation (see the erasure) on the ledger of the Bank of this 
date. I believe that our honest friend Bartow owes this $20,000 
to the Bank, but there has been so much of this nature, and 
other debts of his and others to see to with him, that I have 
thought it good policy not to let him know of all that I knew, 
but to attack him one at a time, and get secured before 1 let him 
understand that I knew more , fearing if I broke in upon him 
with the whole of his ****** and deficiencies, that I should spoil 
the game, .and perhaps lose the whole by his going off. (By 
the bye he is a fool he don’t run away, for how can he es- 
cape in the end.) 

SAMUEL LEGGETT, Pres’t. 

1827, Smo. 31. — Quarter past 3 P. M. — found the account 
of R. & G. Bartow overdrawn $2400. On information from 
John Leggett, book keeper, I found that R. Bartow had repre- 
sented to him, that he had several discounts by the Board that 
morning, and that it was right. (This being a false represen- 
tation, I have here noted it.) This account plagues me, they 


so 


overdraw and kite continually, and I am afraid to stop them too 
short, for fear of breaking them.* 

S. L. 

3mo.'31sL — Held a consultation with S. Miller, in the pre- 
sence of R. Bogardus, on the subject of the Bank, he peremp- 
torily and decidedly advised me to go on with the Bank as long 
as l believed I was bettering her condition, and to get securi- 
ties as well and as fast as I could. 

S. L. 

1827, Amo. 2d . — Called on Garret Furman, one of the com- 
mittee, and stated to him the general state of the accounts of 
R. & G. Bartow, and of its being now largely overdrawn, and 
desired him to bring it before the Board to-morrow, (which he 
promised he would) as £ was determined not to take the respon- 
sibility of it any. longer. 

S. L. 

1827, A mo. 3 d . — At a meeting of Directors this day, present. 
Leggett, Astor, Palmer, Corse, Burtus, and Furman — I repre- 
sented to the Board the state of the account of R. &. G. Bar- 
tow, with the Bank ; that it was continually overdrawn, that I 
did not like to take upon myself the responsibility of either 
stopping their checks, or paying them. 

After full discussion and explanation, they resolved that my 
conduct in relation to that account, be approved, and that I be 
authorised to use my own discretion regarding it in future, &c. 
<&c. (see minutes of the Bank.) It may be asked why I did 
not close their account, or why I did not stop paying their 
checks. Answer. — Because I was afraid of breaking them, and 
then the Bank would be worse off ; my whole conduct is from 
policy, and to endeavor of the many evils, to choose the least , 
and make the best of every thing. 

And if I should be mistaken, I hope to be forgiven, or rather 
not to incur blame, when up to this time, in a period of less 
than four months, I believe I can shew a saving to the Bank 


* They were frightfully committed to the Bank, in various liabilities, 
which required tender and constant nursing. 


oi $140,000, which I verily believe, with much more, would 
have been a total loss, but for taking charge, and forbearingly, 
but firmly pursuing the course I have. 1 begin to feel a little 
encouraged, and my opinion gains strength, that I shall be able 
to wind up, pay all the debts , and leave a little for the stock- 
holders. But 1 may be mistaken, and if I should be, I hope to 
have at least the sympathy of all good men. Perhaps I may 
be able to resuscitate, and again become a Bank. Oh ! what 
a cheering thought — it will be the happiest day of my life, and 
who knows but it may be so. Hope for the best, and take 
courage. 

S. LEGGETT, Pr. 

Copy of Certificate from John Leggett, first Book-Keeper. 

This is to certify, that previous to Samuel Leggett taking 
charge of the Fram liu Bank, in 12th month last, that John II. 
Hill, Cashier, frequently cautioned the clerks (to my know- 
ledge) not to give S. Leggett any information relative to the 
Bank. 

And since S. Leggett has taken charge, he has requested me 
not to expose certain transactions, particularly relating to the 
Hoboken Bank, and Robert and George Bartow, and has several 
times stated to me, that S. Leggett had no interest whatever in 
the Frani lin Bank, and wondered why he should take so deci- 
ded a stand in keeping down the expenses of the Bank. 

New- York, \th mo. 3 d, 1827. 

(Signed) JOHN LEGGETT. 

This accounts for the thick Egyptian darkness that hangs 
over every part of the Bank, and the great difficulty in getting 
at things. I have been losing confidence in John H. Hill, for 
some time, and the above certainly must go far to confirm my 
suspicions, 

S. L. 

1 should have acted with more decision amongst these ******** 
if 1 thought it good policy — but I think the policy is to keep 
easy, and get all the security there is to be had from them, be- 
fore I strike a blow amongst them ; I think all prudent men will 
approve this. 

SAMUEL LEGGETT. 


18*27, 4 mo. 4th . — Bartow again overdrawn. 

4th Sf 5th . — Made it good. 1 now feel clear of this account, 
and leave it for the committee to attend to. 

SAMUEL LEGGETT, Pres’t. 

1827. 4 mo. 5th . — This day the other Hoboken post note be- 
came due. William Munn, Cashier, requested that it might re- 
main for a day. or two, to effect a settlement with Bartow. 

1827, 4 mo. 10th . — This day, for the first time, was informed 
by James A. Burtus, that John H. Hill was a .Director in the 
Hoboken Bank. No wonder his feelings and conduct are so 
favorable to that Bank. 

My confidence grows less and less in this man. But what is to 
be done? Every thing is so delicately situated, that all noise 
must be avoided. But I sincerely wish the Bank had a more 
able and upright Cashier, and most devoutly do I wish it had a 
better President, for I am worn out. 

1827, 4 mo. 14 th . — I again brought before the Board, the 
state and danger of the Hoboken Bank account, and wished 
their order on it. They resolved to consider it at the next meet- 
ing of the Board. 

I feel low spirited and broken hearted, and nothing but a di- 
vining spirit can tell me what to do, or how to do it. God only 
knows what the result will be. 

SAMUEL LEGGETT, P’t. 

1827, 4 mo. 14 th . — ****** in a state of alarm for his si- 
tuation, told me that when the Bank was run, there \vas $20,000 
of the post notes of the Hoboken Bank, with the first Teller, 
counted as cash; that Mr. * # ** fearing an examination of the 
Bank, told him they must be taken out from there, and it was 
done by making a charge of $20,000 to the contingent account 
of the Bank, and afterwards Mr. to balance that account, 
charged the $20,000 to his, ***#**’ s account, and when he dis- 
covered it, he caused it to be erased from his account, and then 
balanced it by drawing a check as Vice President, for $20,000, 
and had it charged to the account of Henry Post, Jr. President. 
Query. — How does this statement tally with the one made to 
me a few days since, by John H. Hill. 


33 


Memorandum.— When I first found out these defalcations, 
John II. Hill declared himself utterly ignorant of them, but I 
now begin to fear he knows all about it. I hope he is not ac- 
cessary, but it loo K s queer. 

S. L. 

I have for a long time urged Bartow to pay the Tradesmen’s 
certificate, he has as often promised me it should be done, and 
this day has renewed it very seriously, and pledges his honor in 
the most solemn manner, it shall be done next Thursday. 

S. L. 

1827, 4 mo. 17 th . — Yesterday in conversing with John H. 
Hill, on the subject of the Hoboken Bank account, he told me 
that the money which was in the Bank to the credit of James 
A. Burtus, No. 2, had not been drawn from this Bank, and that 
it belonged to the Hoboken Bank. On examination to-day, I 
find that money was drawn 27th March last. I am every way 
deceived, and I now believe I shall shortly cause the Bank to be 
enjoined ; it is hard to come to it, but I believe it must be done. 

4 mo. 18M. — I have repeatedly objected to J. H. Hill being 
Cashier, but owing to the influence of James A. Burtus, he is 
retained. 

SAMUEL LEGGETT. 

1827, 4 mo. 20 th . — This day received $5000 payment for the 
Hoboken post note, due 5th inst. and placed this with what I 
received before, in a sealed cover, and lodged the whole, say 
$20,000, with James Flinn, 2d Teller, for safe keeping, and 
took his certificate for the same, subject to the orders of the 
Board of Directors, the same being received to make good the 
fraud in contingent account.* 

SAMUEL LEGGETT. 

4 mo. 20 th . — Held a conversation with Thomas Buckley, on 
the subject of the Bank, and told him of my difficulties and 
trials, he advised me to hang on, and not to give up the ship. 


* This bundle of money, $20 000 was in the trunk when the Receiver 
placed J. H. HH1 in charge. -Tames Kent cannot give any account of it. 

W 


18*27, 4 mo. 2 8th . — This day not in town, returned in the 
evening — found It. & G. Bartow overdrawn $2330. The mo- 
ment my back is turned, some advantage is taken. 

SAMUEL LEGGETT. 

1827, 4 mo. 30 th . — This day the Tradesmen’s* certificate for 
$20,000, was paid by Hoboken Bank, or R. Bartow, and deli- 
vered to the Franklin Bank, cancelled. It appears this certih- 
cate was issued by the Franklin Bank, to John H. Hill, Esq. 
(See certificate in Bank.) 

Query. — How does this agree with his assertion of not know- 
ing any thing about it, until after it was given ? (See my for- 
mer memorandum.) Oh ! shame, where is thy blush ? 

SAMUEL LEGGETT. 

1827, 5mo. 4th . — Secured the overdrawing of Bartow, and' 
gave the Tellers express orders not to pay their checks beyond 
balance. 

S. L. 

1827, 6mo. 2 cl. — Taken sick with Gout, and in consequence 
was absent from the Bank, and confined, not able to walk un- 
til 15th. 

6 mo. YWi . — Sick with fever and ague. 


7 mo. Is7.— 1 Taken sick with gout. 


7 mo. 

15/A.— 

Do. 

fever and ague. 

8 mo. 

Is/. — 

Do. 

with gout. 

— 

.15*7/,— 

Do. 

fever and ague. 


I have not been fit for business, from the 19tli May, to the 
1st September, and therefore cannot be expected to be answer- 
able for any thing wrong. 

The Bartows still plague me, and kite on the Bank. I have 
given the Cashier positive orders not to pay their checks beyond 
balance, and also the 1st and 2d Tellers. 

SAMUEL LEGGETT. 

1827, 8 mo. 17 th . — ******* ****** informed me that he had 
paid ******** * large sums of money, to induce discounts for 
him, and he knew that others had done the same. 


-* i beg to refer to the President and then Secretary of that Company, 
for the origin of this transaction, 


This accounts for so much bad paper being discounted. 

SAMUEL LEGGETT, Pres’t. 

1827, 10/Ho. 13/4. — Discovered that John IT. Hill, Cashier, 
had drawn 3 drafts on Columbia Bank, Boston, viz. Sept. 15th, 
$3500— Sept. 15th, 1000 — and Sept. 25th, 3500, making $8000 
which does not appear by the books, to be registered or account- 
ed for by him. I requested John Leggett to go to Hill, and in- 
quire into it ; he returned with a message from Hill, saying he 
knew nothing about it, and had not drawn any such drafts. 

14 tk . — See Hill, who is very dangerously sick, and 
been confined for four weeks — he acknowledged he had done 
wrong, but not intentionally, he promised to make it good on 
the 1 6th. 1 told R. Bogardus, W. Seaman, Israel Corse, and Hen- 
ry Astor of it, and took their advice in the premises, at the time 
I discovered it. On the I6th he deposited $7000, and on the 
same day, not feeling easy, I in duty gave the information to 
James A. Burtus. Hill being so very sick and feeble, it was 
deemed an act of humanity to not say much to him on the 
subject. 

1S27, 10 mo . — Hill made a deposit of $1000, to the credit of 
Columbia Bank, Boston, which makes the whole sum good. 

SAMUEL LEGGETT. 

The following letter led to the detection of the above defalca- 
tion. Hill being sick, it fell into my hands, to which (not wish- 
ing to expose any thing at that time). I returned the answer sub- 
joined, without explanation as to Hill. 

SAMUEL LEGGETT. 

Columbia Bank , Boston , 12*4 October , 1827. 
John H. Hill, Cashier. 

Dear Sir , 

The check of the President of your Bank, for $7000, was 
presented yesterday, and although the balance of your deposit 
with us, was only $4336 62, it was paid, rather than expose 
you to the inconvenience attending a protest. 

I am instructed to inform you, that we cannot hereafter honoT 
your checks, for any sum greater than your cash deposit. 


You will please observe that we have before paid your drafts 
in advance, and it becomes my duty to be thus explicit, that 
you may not think it precipitate in refusing to do so hereafter. 

I am respectfully, 

Your obedient servant, 

W. COFFIN. Cashier. 

Franklin Sank , 10 mo. 15 th, 1827. 

W. Coffin, Cashier, 

Esteemed Friend , 

In consequence of the sickness and confinement of John H. 
Hill, for about four weeks, some derangement has taken place 
in our account with you. When I drew the draft for $7000, I 
calculated we had as much more with you— the first intimation 
to the contrary, was receiving your account current, charging 
us with $8000, on the 15th and 25th September; and your let- 
ter of the 12th, gives me the first information of our account 
ever having been overdrawn, the whole of which is without my 
knowledge or approbation. 1 feel mortified, but hope my igno- 
rance of it will be a sufficient apology. 

Respectfully, 

SAMUEL LEGGETT, Pres’t. 

1827, 11 mo. 29/A. — Examined the account of John H. Hill, 
Cashier ; found a deficiency of about $40,000, and fearing I 
might be mistaken, I procured the assistance of E E. Weed, 
who in the presence of R. Bogardus, W. Seaman, John Leg- 
gett, and myself, examined it, and found a deficiency, but we 
all thought it was possible it might be satisfactorily explained. 

llmo. 30 th . — Examined it again, and became satisfied there 
was something very wrong. I reflected on it all this day and 
night , in great trouble and extreme anxiety, not knowing the 
right and proper way to pursue. To make a public exposure, 
would be destruction to the Bank, ruin to Hill, and a total loss 
of the defalcation to the B ank. 

12mo. 1st . — Hy and with the advice of R. Bogardus, and W. 
Seaman, I caused some of the proper charges to be made to the 
account, and in the afternoon of that day, requested, and had 
a private interview with John H. Hill. He promptly confessed 
his error, (to the amount of $20,000) and assured me it was 


done in a weak and unguarded moment, to save the Hoboken 
Bank from stopping payment, that the money was given to 
them to make their account good with the Franklin Bank, and 
that it now lay deposited to his credit, in that, the Hoboken 
Ban! ,* and that it was perfectly in his power to secure the 
debt, and would do it immediately, declaring he had not receiv- 
ed any pecuniary benefit, and without any thought or intention 
of fraud or wrong towards the Franklin Bank. 

This representation was made in so solemn a manner , and 
with so copious a shower of tears, and with so sincere an ap- 
pearance of contrition, that all the tender and humane feel- 
ings are raised within me, for mercy to him I have encouraged 
him to hope and believe, if security is given, that no measures 
will be taken by me, to expose or punish him. Query. — Am I 
right? Is it not my duty to get this Bank secured, in preference 
to exposing and punishing him, and thereby losing the debt ? 

SAMUEL LEGGETT, Pres’t. 

1827, 12 mo. 1^— Half past 6 P. M (Saturday) communi- 
cated the interview with Hill, to Seaman and Astor, Directors. 
They approved of the course I had adopted, and desired me to 
get secured if possible. 

12rao, 3 d — (Monday ) — John Hill assured me it should all 
be arranged to-morrow or next day. 

4 th . — Iiill taken very sick, nothing done. 

5th. Do. Do. 

Assures me it shall be done to-morrow. 

SAMUEL LEGGETT, Pres’t. 

The above statement so far as concerns myself, is correct and 
true. 

W. SEAMAN. 

Also as far as concerns me. 

R. BOGARDUS. 

1827, \2mo. 6th 1 This day John H. Hill deposited his check 
on Hoboken Rank, to the credit of John H. Hill, Cashier, for 


* Whether this be true or false, 1 refer the reader to W. Munn, Cashier 
of that Bank. 


$25,843 I think this is some better, as the Hoboken Bank 
have about $40,000 of notes, (such as they are) lodged in the 
Franklin Bank for collection, and are held as security, and I 
have the promise of more to-morrow 

SAMUEL LEGGETT, Pres’t. 

Received , December 5th, 1827. 

8 P. M. Wednesday evening. 

Dear Sir , 

Mr Munn has been over, and has returned again, and I have 
no difficulty in the matter. 

I convinced him I believe, that it was improper and indeli- 
cate, both towards yourself and me, to postpone a matter of this 
kind, for the arrival of Mr. Dayton, whose presence could not 
alter or strengthen the settlement of the business. 

His only apprehension was, and still is, that he will find you 
disposed to be severe in the final arrangement of the account. 

I have assured him that nothing of the '» ind need be feared, 
and invited him to see you on that subject this evening. 

He was desirous however of getting home I send you en- 
closed, my check for $25,843,* which may be considered if you 
please, as a deposit to the certificate account, or as you suggest- 
ed, to your own account for the present. Iam also authorised 
to say, by Mr. Munn, that the check can either be used as we 
spoke of, or go in the exchanges, or be retained as a cash vouch- 
er, in which latter case, Mr Munn will certify it on presentation. 

I shall see you to-morrow morning at 9 o’clock, on this part 
of the subject. 

I have had a severe time of it since you left me, but am now 
better. 

Your’s respectfully, 

J. H. HILL. 

7 tli . — Received $13,000 notes, security, with 2d Teller. 


* Notwithstanding Hill said the deficiency was only $20 ,000, it will be 
noticed the first voluntary payment from him, was $25,843, and that he final- 
1 v admitted to be due, $42,580. 


1827, 12 mo. 7th . — This day had an interview with William 
Munn, Cashier of the Hoboken Bank, on the subject of further 
security from that to the Franklin Bank. He promised me it 
should be done to-morrow morning* I also suggested to John 
H. Hill, the propriety of he himself communicating to the Board, 
the situation in which he stood in relation to his account. He 
agreed it ought to be done, &c. that he would do it as soon as 
I could say it was made secure. I urged upon him and Munn, 
the necessity of acting promptly in this matter, and immediately 
to furnish the proper security to enable me to state to the Board 
it was made secure. I therefore hope it will be all made straight. 

Query. Is not my situation an extreme trying one, and diffi- 
cult to fall on the right course? but if I can be only justified in 
the end, I shall feel amply paid for all my sufferings to secure 
the Bank, and show mercy to fraudulent men, and thereby pro- 
tect innocent wives, children and respectable connexions, is all 
I desire escaping censure myself. 

V2mo. 7th . — Reported to James Palmer, a Director, the con- 
duct of Hill, by reading to him my proceedings in this book. 
He approved my course. 

SAMUEL LEGGETT, Pres’t. 

/ 

1827, 12 mo. 7th . — I hereby protest and object to and against 
John H. Hill being continued as Cashier, and have endeavoured 
to effect his removal in vain. 

SAMUEL LEGGETT, Pres’t. 

12mo. 8. — W. Munn, Cashier, delivered about $8,000 more 
in notes for security, and promised more on Monday. He ap- 
pears to act in good faith, and I begin to feel confident of having 
it all properly adjusted. 

12 mo. 13 th. — W. Munn, Cashier, delivered about $12,500 
more in notes. 

12mo. 14£/t. — Received from him transfer of bond and mort- 
gage against R. Bartow, for $20,000. 

S. L. 

1827, 12 mo. 15th. — Reported to a special and confidential 
Board of Directors, all my proceedings. 

At a special and confidential meeting of the Directors of the 
Franklin Bank of the city of New-York, convened at the request 
of Samuel Leggett, President of the Bank, at the house of 


40 


Henry Astor, Esq. on the 15ih day of December, 1827, present. 
Samuel Leggett, hlenry Astor, James Palmer, Israel Corse, 
James A. Burtis, Robert Bogardus, and William Seaman, Di- 
rectors ; it was on motion resolved, that William Seaman act as 
secretary to the meeting. 

The President, Samuel Leggett, Esq. then stated that he had 
called the meeting for the purpose of stating to the Board, the si- 
tuation of the account of William Munn, Cashier of the New- Jer- 
sey Manufacturing and Ban! ing Company, with the Franklin 
Bank. That it was now overdrawn about $50,000: that about 
$26,000 of which sum grew out of a defalcation in the account of* 
John H. Hill, Cashier of the Franklin Bank, which was not dis- 
covered by him until a few days ago : that he found himself in a 
very unpleasant and responsible situation, inasmuch as he con- 
sidered the withholding it from the Directors might subject him 
to censure, and openly to divulge it would create other difficul- 
ties, and most certainly a heavy loss to the Bank, and in all 
probability, deprive, the Bank of getting security : that imme- 
diately thereafter, he confidentially communicated it to Robert 
Bogardus, Henry Astor and William Seaman, and advised with 
them on the subject : that they all concurred with him in opinion 
that it would be highly adviseable and proper, that he proceed 
and get such security as he could : that he accordingly made 
use of every exertion in his power, and has so far succeeded, 
as to obtain from the said William Munn, Cashier aforesaid* 
securities and property to the amount of about $80,000. 

The said President thereupon, produced a particular state- 
ment of the same, and after going over them, the Directors 
came to the conclusion, that they would secure the Bank against 
loss, and were more than good for the amount due them. After 
making this communication, Mr. Leggett produced the private 
journal of his proceedings in relation to the whole matter, and 
read the same to the Board, and asked of them their advice and 
direction in the premises, and also as to the propriety and ex- 
pediency of continuing to redeem the notes of the said New- 
Jersey Manufacturing and Banking Company. 

Whereupon after mature deliberation, and a full and free dis- 
cussion of the matter in all its bearings, it was unanimously re- 
solved, that we highly approve of the conduct and judicious 
management of the said Samuel Leggett, the President of the 


41 


Franklin Bank, and fully authorize and empower him to use 
his own discretion to redeem the notes of the said New-Jersey 
Manufacturing and Banking Company, or to stop redeeming 
the same whenever he shall think proper so to do. (Samuel 
Leggett dissenting to the last resolution.) 

And it was further unanimously resolved, that Mr. Leggett is 
eminently entitled to the thanks of this Board, for the prudent 
and judicious course he has pursued throughout the whole of 
the business. 

Resolved, That the proceedings of this meeting be entered on 
the private journal of Mr. Leggett. 

WILLIAM SEAMAN, Sec’ry. 

1827, 12 mo. 1 8th. — John II. Hill, Cashier, deposited his 
check on Hoboken Bank for $7,159, ou account of the defal- 
cation, and passed the same to his credit in Franklin Bank. 

1827, 12mo. 20th. — This day Munn, Cashier, delivered over 
for security, about $6,400, and assures me he will hand more 
daily. 

1827, 12 mo. 25. — This day being Christmas, John Leggett 
and myself examined the account of John II. Hill, Cashier, 
minutely, and found the amount yet due that account, to be 
$9,578, besides interest on the whole amount of defalcation 
for a period of about fourteen months. The account will now 
stand thus : 

John H. Hill , Cashier , to Franklin Bank , Dr. 

For money taken by him at different times, - $42,580 

Cr. 1827, 12 mo. 6th. — By draft on Ho- 
boken Bank, - - $25,843 

“ 18th. — Do. do. 7,159 

33,002 


Balance due besides interest on the whole sum, $9,578 
1827, 12 mo. 25th.— I hereby protest to continuing John H. 
Hill as Cashier. 

SAMUEL LEGGETT. 

1827, 12 mo. 26th. — Had a private interview with John H, 
Hill, Cashier, at my house. He admitted the correctness of the 
account, as stated on the other side ; declared he could not ac- 

F 


42 


count for its being 1 so much ; he gave me his check for $4,840.50y 
and promises the balance to-morrow. 

This is a strange affair. He first stated it to be only $20,000 ; 
it turns out to be $43,000!!! $37,842 50 of which he has paid. 
How is this? Can it be possible he did not know the amount? 
It cannot be I have found him a and I am afraid he 

will prpve a *****. Oh shame, where is thy blush ! 

SAMUEL LEGGETT, Pres’t. 

1828, tmo. — I hereby object to continuing J. H. Hill any 

longer Cashier. 

SAMUEL LEGGETT, Pres’t. 

Imo. 2d. — J. H. Hill promises to arrange his account posi- 
tively to-morrow. 

Imo 2d . — 1 hereby protest against John H. Hill being con- 
tinued Cashier. 

1828, Imo. 2c?. — I spent this evening with Lynde Catiin, Pre- 
sident of Merchants’ Bank, at his house; produced to him this 
book; he read the same, and approves the measures 1 have 
adopted, and advises me to draw easy with the Hoboken Bank, 
and to continue to redeem their notes, if they keep me secured ; 
assures me of the friendly disposition of their Bank, and is t© 
speak to some of the officers of other Banks for an understand- 
in «' for me to owe each a balance of $5,000. The friendly aid 
open manner that he receives me was very soothing to my feel- 
ings. and greatly encourages me to proceed on in the work of 
bringing things straight. In the above interview, I asked him if 
there would be any impropriety in my discounting notes for the 
Bank with my own private funds. He said, certainly not ; but that 
whenever I had funds individually, and the Bank needed money, 
it would be creditable to me to aid the Bank that way, or for 
any other Director to do the same. 

SAMUEL LEGGETT, Pres’t. 

1828, lmo. 2d. — R. and G. Bartow overdrawn by kiteing 
$4,300. He came to me in great distress, and proposed to 
lodge as collateral security, about $7,400 of sundry notes, and 
have the balance when paid, applied to the curtailment of their 
accommodation notes. I considered this a good operation, and 
therefore concluded to do it, on the express condition that they 


43 


should not kite any more, and with the express understanding 
that if they do, their checks shall be sent back without cere* 
mony. 


SAMUEL LEGGETT, Pres’t. 


1828, 1 mo. 3 d . — Hill promises to arrange his account to- 
morrow. 

\mo. 5th . — With much urging both of Hill and Munn,for his 
check for the balance, I have at last obtained it for $4,737.84, 
which appears to be the balance, except interest, which is left 
for future negotiation and settlement; having received from him 
altogether $42,580, and passed to his credit as Cashier. 

1 mo. 5th. — R. and G. Bartow, contrary to express agreement, 
and positive understanding, again kited on this Bank ; my full 
determination was to return his checks. I however received 
from them a letter begging to have it retained, on his making a 
deposit to meet it, and offering to close their account if I thought 
proper : the latter of which I concluded to do, and gave orders 
to the Tellers accordingly. 

SAMUEL LEGGETT, Pres’t. 


1828, I mo. 5th . — Called a special meeting of Directors at the 
house of Henry Astor, at 7 P. M. Board met. I reported to 
them my proceedings, and produced this book with my memo- 
randums, read and explained the same to them, and the follow- 
ing proceedings had. 

At a special and confidential meeting of the Directors of the 
Franklin Bank in the city of New- York, January 5, 1828, held 
at the house of Henry Astor, Esq. at the request of Samuel Leg- 
gett, Esq. Present — 


Samuel Leggett, 
James Palmer, 
Garret Furman, 
Dennis H. Doyle 


Henry Astor, 
Thomas Freeborn, 
James A. Bi rtus, 
William Seaman. 


The minutes of the special meeting held 15th December lasf; 
were read and approved, as also the memorandums of the pro- 
ceedings of Mr. Leggett. 

Mr. Leggett, President, reported he had succeeded in getting 
the checks of John H. Hill on the New-Jersey Manufacturing 
and Banking Company, for the amount of the principal of the 


/ 


44 


defalcation of Mr. Hill, amounting to the sum of $42,580.74, 
leaving the interest due thereon, for further adjustment and 
negotiation, stating at the same time, the situation of the ac- 
count of W. Munn, Cashier of the said Hoboken Bank, and 
desiring the further direction of the Board in the premises. 

Whereupon it was unanimously resolved, that the Board fully 
and cordially approve and confirm the course pursued by Mr. 
Leggett, in relation to the whole settlement with John H. Hill, 
and the measures adopted by him in relation to the account of 
Wslliam Munn, Cashier of the New- Jersey Manufacturing and 
Banking Company ; and that he is entitled to the thanks of this 
Board, for his conduct in relation to the whole subject. 

Mr. Leggett further stated, he had consulted with Lynde Cat- 
lin, Esq. President of the Merchants’ Bank, and stated to him 
the course he had pursued : that Mr. Catlin approved the same : 
that he specially consulted him on the propriety of his, Mr. 
Leggett, or any other Director of the Franklin Bank, discount- 
ing notes for the said Bank, with his or their own private funds, 
in aid of the Bank, and that Mr. Catlin gave it as his opinion, 
that it would be perfectly praiseworthy to do so. 

It was thereupon unanimously resolved, that this Board con- 
cur in opinion with Mr. Catlin, and approve of Mr. Leggett, or 
any other Director, discounting for this Bank, and giving the 
money for any note or notes they may think proper to discount, 
in aid of this Bank. 

At the request of Mr. Leggett, the Board further resolved, 
that James A. Burtus, Henry Astor and William Seaman, be 
a special committee to aid and advise with the President, in re- 
lation to all the matters connected with the New-Jersey Manu- 
facturing and Banking Company, in every particular. 

WILLIAM SEAMAN, Sec’ry. 

(T have here and before omitted many particulars of the way 
and manner in which I got security of the Hoboken Bank, 
and of the trials and extreme perplexity it occasioned me : 
the original may be seen at all reasonable hours.) 

1828, I mo. 162/j. — W. Munn, Cashier, gave me to under- 
stand that Hill’s account was overdrawn with them, and as they 
had assumed the responsibility of his defalcation in the Frank- 
lin Bank, he thought they were entitled to our liberality. There 


45 


is a good deal in this remar', ; for I have certainly managed to 
shoulder Hill’s debt upon them. 

1S2S, Zmo. 2 d . — I hereby confirm my protest against John 
H. Ilill being continued as Cashier, but the Directors are afraid 
to remove him. 

S. L. Pres’t. 

1828, 2 mo. 13£/t. — I entered upon the minutes of the Bank 
the following, viz : 

Whereas the President, Directors, &c. of the Franklin Bank 
of the city of JNew-York, have from motives of policy and ne- 
cessity,, (to prevent a greater evil) been in the practice of re- 
deeming the notes of the Nevv-Jersey Manufacturing and Bank- 
ing Company ;* and whereas circumstances originating beyond 
the control or knowledge of myself, have brought that Bank 
heavily in debt to this Bank. 

And whereas, by great exertion, securities have been effected 
for the same, and at the different times of receiving such secu- 
rities, it was expressly stipulated that they should and would 
keep this Bank in funds for the future redemption of their notes, 
but the daily experience shows their debt to be almost con- 
stantly increasing upon this Bank; and whereas the committee 
appointed to assist and advise me in the premises, are unde- 
cided what is best to do,f (and it is a difficult matter to deter- 
mine, although I have frequently given it as my opinion, that 
the time had come when we ought to stop the redemption of 
their notes, but I am not certain it would be a proper measure.) 
Wherefore in discharge of my duty, and to meet any future 
contingency that may hereafter arise prejudicial to this Bank. 

I hereby object to the redeeming any more notes of said Bank- 
ing Company, and have thought proper by this instrument, to 
record my views and opinions of the course that ought to be 
adopted, and thereby exonerate myself from any blame or re- 
sponsibility that might otherwise attach to me. 

Dated 13th Feb. 1828.J: 

SAMUEL LEGGETT. 


* Hoboken Bank. 

t W. Seaman protested at the same time. 

1 Injustice to A. O. Dayton, President, and William Munn, Cashier, I 
wish distinctly to he understood as not charging them, or either of them, 


40 


1828, 2mo. 1 6th. — Called a special Board — proceedings as 
follows, viz: 

At a special meeting of the Directors of the Franklin Bank, 
Tield at the Banking house, at 4 P. M. present, S. Leggett, I. 
Corse, G Furman, D. II. Doyle, H. Astor, S. James, J. A. 
Burtus Thomas Freeborn and William Seaman The Cashier 
being absent, W. Seaman was appointed Secretary. These 
minutes being entered on the minutes of the Bank, and as re- 
gards myself, principally relating to redeeming the notes of the 
Hoboken Ba; k, and obtaining securities and approving my con- 
duct, the reader is referred to the Receiver for particulars. 

1828, March itth . — Confirming my objections heretofore 
made on the minutes of the Bank, under date of 13th February, 
1828. 1 wish to be distinctly understood as continually pro- 

test -ng and objecting to this Bank redeeming the notes and bills 
of the New-Jersey Manufacturing and Banking Company, and 
to the mode and manner in which the account of William Munn, 
Cashier, is kept in this Bank, upon the principle that a suffi- 
cient deposit is not kept up to meet the same, and that their 
debt is continually increasing instead of diminishing. Of all 
which, regular report has been made to the committee on that 
subject. 


SAMUEL LEGGETT, 


1828, 3?no. 15th . — Renewed $12,000, Bartow’s accommoda- 
tion aotes. 

At a special meeting of the Directors of the Franklin Bank 
of the City of New-York, held at the house of Henry Astor, the 
evening of the 15th March, 1828, at the request of Samuel Leg- 
gett, President. Present — 


Bogardus, 


Astor, 

Burtus, 

Doyle, 


Corse, 

Freeborn, 

Leggett, 

Seaman. 


with any improper conduct, for I believe the difficulties of that Bank are not 
chargeable to them ; but 1 do wish they would lift the curtain, and let us see 
who it is, being of opinion it would elucidate my expose. 


47 


The former memorandums and minutes read and approved. 

Resolved, that William Seaman act as Secret ay to this 
meeting. 

The following comm unication was made by Samuel Leg- 
gett, viz. 

1 have called you ogether once more in special meeting, to 
take into consideration the situation of the account of William 
Munn, Cashier, with the Franklin Bank, and to notify you, as 
I have before repeatedly done, that the debt is daily increasing 
upon this Bank, and that they have increased their debt in the 
course of the present week, nearly $1000 per day. It is true 
they have lodged further securities, but of its quality I am igno- 
rant, but am under the impression it m ty be tolerably good. 

I cannot tell you the precis arm unt the Franklin Bank is in 
advance, as of late, 1 have been in the habit of discounting the 
notes they bring, (as security) in place of receiving them for col- 
lection, which has been regularly reported to you and approved. 

I should judge our advance f< r discounts and overdrawings, 
by our redeeming their notes, must be at least $80,000. 

In justice to them I must also add, that the Franklin Bank 
holds notes and Mortgages, &c. for upwards of $30,000 more 
than the advances — how good such securities are, you are best 
able to decide. 

I have before consulted you in special Board, upon the pro- 
priety of continuing to redeem their notes, or of stopping them. 

I must confess it is a difficult and delicate question to settle, 
and that much may be said on both sides of the picture — but 
this much I do know ; that the redemption of iheir notes is ex- 
cessively inconvenient, and very annoying to my feelings, and 
tends very much to the crippling the Franklin Bank, and I am 
afraid it will not grow any better in future. 

We are now in debt to the other Banks, to the enormous 
amount of $88,000, and liable to be called on every day for spe- 
cie, and as long as the Hoboken Bank keep increasing their 
debt with us, just so long shall we be in this unpleasant dilem- 
ma. We are obliged to cease doing business in consequence 
of it, when if we had the money for their debt, we should be 
comparatively in easy circumstances. 

I make these explicit and repeated communications to you, 
for your direction, aid, and advice in the premises, and for my 
justification, so that in case of loss, I may not only feel myself 


48 


exonerated, but be actually so in your minds, and in the opinion 
of all who may be interested. The case is once more brought 
before you, and whatever you may decide, 1 will govern my- 
self by. 

It may also be proper for me to say I have entered my pro- 
test on the minutes of the Bank, against the redemption of their 
notes, and that I have not changed my opinion.* 

(Signed) SAM URL LEGGETT. 

The foregoing communication being read, a full and free 
discussion took place upon the merits, and different bearings 
and ramifications of the case. 

Whereupon, after due deliberation, it was resolved, that this 
Board fully and cordially approve and confirm the conduct and 
management of Samuel Leggett, in relation to the different ne- 
gotiations he has made with and for William Munn, Cashier, 
and in the discounts made to him, and in the redemption of the 
notes of the New-Jersey Manufacturing and Banking Compa- 
ny, and that he is entitled to great credit for the course he has 
adopted, and his management of the Bank, and his whole con- 
duct pursued in relation to it. 

A letter from A. O. Dayton, President of said Bank, was re- 
ceived, addressed to James A. Burtus,f which was read to the 
Board, and is hereto annexed. 

New York , March 15, 1828. 

(Addressed outside, to James A. Burtus, Esq.) 

Dear Sir , 

I take the liberty of addressing you once more upon the con- 
cerns of the Hoboken Bank. I should not presume to trouble 
you, were it not that upon a recent examination of the account, 
we find ourselves more favorably situated, than we ourselves 
had anticipated. I enclose you a statement of Mr. Munn, by 
which it appears that our debt to the Franklin Bank has been 
reduced to $10,000, and that for this balance, it holds securi- 
ties to the amount of $40,000, among which are the notes of the 
Stevens’ for about $15,000. Mr. Munn has conversed with Mr. 


* A large amount was lost by this Bank, but how much 1 do not know. I 
refer to James Kent. 

t Lately a Director in the Hoboken Bank. 


4 » 


X»eggett on this subject* and he will doubtless inform you that, 
the statement is correct. 

\\ hen we look back a few weeks, and compare the present 
state ot things with that which then existed, when information 
of a debt of $45,000, came suddenly and unexpectedly upon us, 
we trust that some consideration will be given to the great and 
unremitting exertions, by which we have almost discharged, and 
have rendered entirely secure, an amount which to us was 
immense. 

It is true that during a few days past, our account has gone 
behind, but this if we except the draft of deposits to the amount 
of 2 or $3000, - is the consequence of our having surrendered 
all our paper, and of exchanges made in order to obtain money 
from day to day, to pay into the Franklin Bank. 

The money thus exchanged in the neighborhood, has nearly 
all come in, and we have little doubt, that after two or three 
days, the receipts will not average more than $1000 per day, if 
so much, which we shall probably be able to meet by distant ex- 
changes, and by deposits received from the Messrs. Stevens, 
which in the summer, will probably amount to 2 or $3000 a 
week. 

We know the difficulties of the Franklin Bank, and how 
much more important money is to them than securities, and we 
feel grateful for the indulgence which they have thus far extend- 
ed to us, under such adverse circumstances. But we have done 
all in our power to make the burden as light as possible, and we 
do trust the time is near, when it may be altogether removed, 
without the injurious consequences that would ensue to us, from 
any harsh measures on the part of the Franklin Bank. 

1 never write or speak on this subject without the deepest 
anxiety. 

Mr. Munn and myself have had a most arduous and painful 
task. 

We have been thrown, without any fault of ours * that we 
are aware of, into a situation of great danger and difficulty, 


* Note by S. L . — Robert Bartow and John H. Hill were the chief offi- 
cers of that institution, and 1 am of opinion, mat maqh light would be diffu- 

G 


<*0 


from which, without assistance, we are unable td extricate our- 
selves, and from which, we see the destruction of our future 
prospects, as the inevitable consequence of an unsuccessful issue 
to our efforts. 

We trust however, that a short extension of the liberality 
which has heretofore characterised the proceedings of your Di- 
rectors, will relieve us from all uneasiness, while it delivers them 
from all difficulty on our account. 

I am, dear sir, 

Very respectfully, 

(Signed) Aa. OGDEN DAYTON. 

Mem. The debt of $10,000 alluded to in the foregoing let- 
ter, means the account of W. Munn, Cashier, is overdrawn to 
that amount— that and the notes discounted and unpaid, and 
mortgages received, is what I mean in my communication to 
the Directors, this day, when I say the advance is about $80,000. 

3 mo. L5th. 1828. 

SAMUEL LEGGETT. 

\ 

Whereupon, it was further resolved, that the Franklin Bank 
may continue to redeem the notes of the said Bank for the pre- 
sent, and in case they do not keep up a deposit sufficient to 
meet such redemption, that the President be at liberty to call a 
special Board — Samuel Leggett dissenting. 

Resolved, that the proceedings of this meeting be entered on 
the private journals of Mr. Leggett. 

W. SEAMAN, Secretary, 

1828, 3 mo. 18 ih . — Renewed about $ 12,400 of R. & G. Bar- 
tow’s accommodation notes. 

1828, 4 mo. 21 st . — Solicited and had a special and confiden- 
tial interview with Charles Wilkes and Lynde Catlin, on the 
whole subject of the Franklin Bank — opened my views of wind- 


sed on the causes of the Franklin Bank’s failure, if an expose should be 
made by Munn ai d Dayton, and that a comparison of books and circumstan- 
ces would give much additional and interesting information of both institu- 
tions. for I cannot divest inysejf of the belief, there are many hidden and 
hideous deformities to come forth. 


mg' up the institution, and stated my hope and belief that there 
would be sufficient property, if prudently nursed, to pay the bills 
and deposits of the Bank, and stated the impossibility of pay- 
ing specie, and going on without the aid of the other Banks, &c. 

They agreed to the importance and propriety of keeping on, 
and assured me of their willingness to assist, &c. &c. and ap- 
proved of my proceedings, and expressed themselves very desi- 
rous to avoid a stoppage, fearing the effect upon other institutions. 

SAMUEL LEGGETT. 

Same day . — I have for a long time reported to the Directors, 
and their committee, the state of the account of William Munn, 
Cashier, and shall continue so to do. 

SAMUEL LEGGETT, Pres’t, 

1828, 4 mo. 25th . — Endeavored once more to resuscitate by 
causing a subscription to the stock, and have arranged with 
Wiikes .and Catlin, for the money on the stock notes, as 
security. 

S. LEGGETT, Preset. 

4 mo. 2 5th . — Made some progress in the subscription, both 
among the Directors, and other of the stock-holders, but from 
the laxity of some, and the unwillingness of others, I am afraid 
1 shall not succeed. 

SAMUEL LEGGETT, Pres’t. 

1828, 5mo. 28th . — Negotiated a loan from the Bank of 
America, for $25,000, endorsed by Astor, Burtus, and Bogar- 
dus, and guaranteed by me. When I returned back to the Frank- 
lin Bank, about a quarter past 1 o’clock, I was informed that 
Butchers in Fulton Market had refused to take Franklin Bank 
notes, and found a small run upon the Bank, it was also report- 
ed that some Bank in Wall-street had refused our notes — about 
half past two, received a notice from the U. S. Branch Bank, 
that our notes would not be received beyond balance of account. 

1 was also informed a general run was contemplated next 
day — under these circumstances, I made up my mind it would 
be best to enjoin the Bank. I then called a special meeting of 
the Board — present, Astor, Seaman, Burtus, Furman, James, 
Bogardus, and Leggett. Gave them my opinion of the state ©f 


things, informed them one of three things must be done. First, 
to commit themselves for $ 1 00,000, and the money raised by 
me that night. Second. — To stop payment. Third. — Or cause 
the Bank tube enjoined. That the first or third were the prefer- 
able modes, and the second should beavoided if possible, m order 
to save any injurious effects upon other institutions. The in- 
junction I thought preferable, if the first could not be done. '1 his 
could not be arranged, and I determined to enjoin, and went 
with R. Bogardus to Ogden Hoffman’s, at half past eleven 
o’clock that night, and prepared the papers. * 

5mo. 29 th . — Half past 8, A. M. — Went in company with 
Lynde Catlin, and my counsel Hoffman, before the Chancellor, 
at his chambers — ^presented my petition, and obtained the order 
for injunction, and caused the same to be served about 20 mi- 
nutes past 10 the same morning. t 

S. L. 

P. S. Another reason for injunction was the receiving the 
notes of the Hoboken Bank, and the heavy advance we were 
under already, and the continual increase of their debt, and the 
Directors not sufficiently prompt in stopping them, against 
which I have protested three several times. 

1828, (jmo. 2 d . — William Kent, son of James Kent, the Re- 
ceiver, came to the Bank and received the keys thereof. (See 
my letter of this date, to J. Kent.) 

6mo. 3 d. — W. Kent returned the keys (for the purpose of 
opening the Bank at 10 o’clock,) to John H. Hill, saying that 
James Kent, the Receiver, would be there at 1 1 o’clock. At 12 
o’clock, James Kent and Murray Hoffman came to the Bank, 
and served a set of interrogatories upon the Cashier, Henry As- 
tor, James A. Burtus, W. Seaman, G. Furman, Samuel James, 
and myself. Remained there some time, received some notes 
from the Cashier, and placed them in Manhattan Bank for 
collection. 


* I resigned that night. 

t By this measure all must see that every creditor would get his fair pro 
portion, and that no one had a preference over another. 


He then placed the keys and property in the charge and pos- 
session of John H. Hill, saying he held him responsible for all 
the property, SAMUEL LEGGETT. 

1828, 6mtj. 27th . — Confidentially loaned to James Kent, my 
book ot remarks, and journal of my proceedings in the Frank- 
lin Bank — had the same in his possession one week — on which 
he displaced John H. Hill, and appointed John Leggett. 

1829, 1 mo. 6th . — John Leggett told me they had found sun- 
dry defalcations of Hill’s, w:th the Bank of North America, 
Trenton Bank, and Newark Bank.* 

This ends the extracts from my journal, I have omitted many 
things in consequence of fearing to tire the reader’s patience — 
I repeat however, the original is open for inspection to all 
inquirers. 

S. LEGGETT. 

Note. It will be manifest to the reader, that the extracts 
from my journal, are in a very crude and desultory form — these 
were never made for the public eye, nor was it expected to be 
necessary ever to give them publicity in the manner now pre- 
sented, they are of course, nothing more than the record of trans- 
actions as they occurred, written in a very hasty and careless 
manner originally ; their very errors (if any thing was wanted) 
confirm their being a genuine history, and the necessity of the 
case compels their publication, as connected with the whole 
subject. 



After the perusal of the above Extracts, some idea may 
be entertained by the reader, of the difficulties to be over- 
come. 'They exhibit, however, but a portion, and no man 
who has never been placed in the same situation, can rea- 
lize all the perplexing and embarrassing conditions in 
which 1 found myself, as connected with the institution. 
1 have before s'ated that my ambition was greatly excited, 
and that 1 was emulous of succeeding in the enterprise in 
which 1 had began. 


For the truth of this, I refer to James Kent and John Leggett. 


04 


After having done all which my industry and exertions 
could achieve, with zeal and labour untired, I found 
that the Bank was still tottering ; that some other measure 
must be resorted to, to save it from ruin, and to restore it 
to a respectable standing. 1 discovered that the Bank 
itself was the owner of 4858 shares of its own stock, and 
that consequently, the institution had in apparent funds 
only the half of its nominal capital, about $250,000 ; that 
of the last mentioned sum, the greater proportion had been 
so disposed of in the management of the Bank, and in 
debts due to it, which debts were not immediately con- 
vertible into cash, and could not be called in ; so that the 
effective or real capital of the Bank itself amounted at the 
time here meant, to one half of this apparent capital, 
and this was so placed out of the reach of the Direc- 
tors, that it cannot be said to have made up any inte- 
gral part or portion of its active capital in the transaction 
of its business. All that could be done, therefore, with 
propriety, and upon just principles, was to call in and se- 
cure the debts as judiciously and speedily as practicable : 
to extricate the institution from its difficulties : to curtail 
its expenses, and to afford means and funds for bettering 
its condition. 1 proposed to the Directors to become the 
purchasers in their individual names, of this dormant or 
dead capital, and with this view, early opened a subscrip- 
tion to the Board of Directors, hoping by their becoming 
purchasers, to enable the institution to pursue its banking 
operations, and eventually to recover from embarrassment. 
I was perfectly willing to subscribe for a large proportion 
of the stock, and upon the opening of the subscription, sub- 
scribed for 500 shares, which I was then willing and able 
to pay for in money, at par value. Most of the other Di- 
rectors subscribed with equal liberality, and according to 
their judgments and capacity. But a further investigation 
into the affairs of the institution, convinced me that I had 
been mistaken in its actual condition, and had made repre- 
sentations to the Directors more favourable than facts 


55 


would justify ; in consequence of which, the purchase of 
the stock so contemplated was for a time abandoned. 

COPY OF SUBSCRIPTION, No. 1. 

We, the subscribers, agree to purchase of the Franklin Bank, 
the number of shares affixed to our names, at par, and to give 
our respective notes, payable with six per cent, interest, at two, 
four and six months. 

New- York , December 1G, 1826.* 

SIGNED. 


Samuel Leggett, 
Robert Bogardus, 
Israel Corse, 
James A. Burtus, 
Henry Astor, 
James Palmer, 
Thomas Freeborn, 
George Youle, 

R. Bartow, 

H. Post, Jr. 
Samuel James, 


Five Hundred Shares. 
Five Hundred Shares. 
Three Hundred Shares. 
Five Hundred Shares. 
Five Hundred Shares. 
Two Hundred Shares. 
Two Hundred Shares. 
Two Hundred Shares. 
Three Hundred Shares, 
Six Hundred Shares. 
Two Hundred Shares. 


ENDORSED. 


In consequence of finding the defalcation of — - 

it was concluded to postpone it, and some of the Directors con- 
cluded not to do it. I therefore erased the names at their re- 
quest, hoping to get the defalcations secured, and then to bring 
the subject up again. 

SAMUEL LEGGETT. 

After a further and more minute investigation, when I 
believed I had possessed myself, substantially and gene- 


# At this time Bartow and Hill specially spoke of the ultimate sound state 
of the Bank, and I had no knowledge or suspicion of any wrong-. 


rally, of the condition of the institution, when ] thought 1 
had secured several v ery important debts and defalcations, 
and when I most firmly believed that I was justified in 
renewing the proposition to subscribe for the dormant 
stock in the manner before proposed, I renewed the pro- 
ject and became a subscriber for 700 shares; the other Di- 
rectors co-operated with me, with their former liberality, 
and the following gentlemen, Directors, subscribed a 
paper, the original of which is in my possession.* 1 

The prospect of restoring the Bank to respectability, 
confidence, and even successful operation, was now flat- 
tering, and compensated me in my then feelings, for many 
of the difficult ies I had encountered. 1 fondly hoped, and 
firmly believed, that I had been instrumental in saving a 
large sum of money to the Bank, and even indulged in 
the expectation of reinstating the institution to its former 
usefulness, and saving to its stockholders, the w hole or the 
greater part of the capital. 

With these intentions, and in the faithful perseverance 
of my official duty, I continued to investigate and examine 
the affairs of the Bank, in general and in detail. To my 
utter disappointment and dismay, 1 found still further dila- 
pidations \ Very large sums of money had been abducted 
from the institution, as it appeared to me, covertly and 
surreptitiously, the detection of which had heretofore 
eluded my most diligent inquiries. The sum of between 
fifty and sixty thousand dollars had been draw n from the 
Bank (and w as then esteemed lost) by John H. Hill, the 
then Cashier. This sum had been drawn from the coffers 
of the institution at different periods, and in various ways, 
for the most part previous to the commencement of my last 
official duties. Jn making this discovery, 1 was greatly 
perplexed as well as mortified. These transactions were 
enveloped in a mystery, and involved in a form and cha- 
racter which would seem to defy detection, and it w^as not 


* I find on examina* 'on, I have lost this paper, but refer to the Directors 
for the tiuth of this assertion. 


57 


until after a most laborious investigation, and after calling 
in the assistance of an able accountant out of the Bank, E. 
E. Weed, (assisted by two Directors) and John Leggett, 
that with a most full conviction of the correctness of my 
opinion, I ventured to disclose this information to the 
Finance Committee of the Bank for their advice and direc- 
tion. John H. Hill was summoned to an interview with 
the then President, who was authorized by that Commit- 
tee, to call upon him on the subject of his default. At 
this interview, the delinquent, with tears of contrition, ad- 
mitted he was a defaulter, to the amount only of twenty 
thousand dollars. He, however, subsequently admitted 
tiie whole amount to be due the Bank, and by great and 
patient exertions, principally made by the President, the 
whole amount, except the interest, which then amounted 
to near $3,500, was paid.* After this adjustment and 
others of a similar character, the project of purchasing the 
dormant stock was again renewed. The hope was fondly 
and confidently indulged, that all difficulties were now 
overcome; that regular and profitable business would en- 
sue; that corresponding success would naturally follow, 
provided every person connected with ihe institution ex- 
erted himself strenuously for the general benefit. No new 
difficulties seemed to interpose, and new spirit was gene- 
rally diffused. It may be proper here to insert the letter 
of John H. Hill on the subject, as connected with his 
transactions. 

Saturday, January 12th, 1828,. 

To the President and Directors of the Franklin Bank . 

Gentlemen, 

I have a duty to perform towards you, as Directors of this in- 
stitution, most painful to my feelings, but incumbent upon me 
in every view. 

• When I say paid, I mean by his drafts on the Hoboken Bank. This ar- 
rangement, however, forced a continuation of business between the Franklin 
Bank and that institution. The accounts between the two institutions, leave 
the Hoboken Bank largely in debt, and th s, I understand, has never been 
paid. What the amount of this loss is. I am unable to say. 

H 


58 


It is a duty which I owe to you, not only as Directors of this 
Bank, hut as individuals who have given me their confidence, 
and have manifested towards me uniformly, the most friendly 
dispositions. The circumstances have already been detailed to 
you, and it is painful to my feelings to be obliged to allude to them 
again. I do not design to palliate the impropriety of the steps 
which I took, and which appear every day, upon reflection, more 
and more manifest to myself. 

But candidly and freely acknowledging my great fault, I 
would beg leave only to add one or two remarks, by way of ex- 
planation l would then respectfully suggest, that I was ac- 
tuated in what I did by the most upright intentions, and with a 
sole view to maintain tl.e credit of our institution. 

I may have been mistaken in the course which I pursued to 
effect these objects, and doubtless, as to its prosperity, I was ; 
but such were my views, and no one can doubt it who knows 
the fact, that 1 myself was not personally interested either in 
the success or failure of the measures which I adopted. 

The situation of the Hoboken Bank, in consequence of the 
failures around them, required prompt and efficient aid. The 
relation in which it was supposed to stand with the Franklin 
Bank, and of the state of feeling in regard to the Franklin 
Bank, in consequence of the late run upon it, and the impru- 
dent management of its officers, made it of the first importance, 
that nothing should occur at that crisis, to increase the public 
distrust or alarm. Had the Hoboken Bank have been suffered 
to fall at that time, nothing could have prevented another and 
fatal run upon our Bank. It could not, under the circumstances 
which then existed, have sustained the shock ; it must have been 
fatal. I knew these facts. I had no one to counsel with who 
would have entered into my views, and satisfied as I was of the 
entire solvency of the Hoboken Bank, and of my ability to keep 
possession of sufficient securities. 

I resorted to the only measure which I deemed at that time 
practicable, and in doing so, I repeat to you, gentlemen, that I 
acted to the best of my judgment, and with a single view to the 
preservation of our institution. 

I confess that I was indeed dreadfully perplexed. My chief 
error in the outset was, doubtless, my not asking the advice of 
those friends who might have counselled me. 


50 


But I was afraid of their opposition. This was an error of 
judgment. I was rash in my first step, and all the others were 
the result of this. 

I was often stiongly tempted to confide in Mr. Samuel Leg- 
gett, and once actually proceeded to h>s house for the purpose 
of acquainting him ; but a sense of shame prevented me, and 
thus day after day passed over, without being able to bring my- 
self to a proper resolution on this subject. 

Another remark I beg leave to make, that I never lost sight 
of the resources from whence, under any emergency, I could 
replace or secure to the Bank, the w hole amount ; but how I 
was to effect it seemed to me impossible, without making a dis- 
closure which I felt ashamed to make. 

I owe it to Mr. Leggett, to say that this obstacle was over- 
come, by the kind and friendly manner in which he met me on 
this subject, and to his judicious advice I am indebted for having 
been enabled to place all things as they stood before this un- 
happy matter arose. 

Painful indeed has been the lesson T have learned from the 
results of this step. But I do trust it will be a salutary one, and 
that I may henceforward ever remember that the plain path of 
duty, however rugged and painful, is the course which must be 
pursued, if we would expect peace of mind, or the approbation 
of good men. 

I am, gentlemen, very truly. 

Your obedient servant, 

(Signed) JOHN H. HILL.* 

1828, 1 mo. 12 Ui . — The foregoing was read by me to the 
Board this day. Present, Henry Astor, Israel Corse, Samuel 
James, Dennis H. Doyle, James Palmer, W. Seaman and my- 
self, on which no proceedings were had. 

SAMUEL LEGGETT. 

And yet this same man, when under oath as a witness 
in the prosecution against me, solemnly testified that I 
had hever accused him in any manner, of having done 


* To enable the reader to understand the subject of this letter,, he is re- 
ferred to the extracts from my journal. 


60 


any thing dishonest or improper in the business of' the insti- 
tution. How far tins testimony can be reconciled with his 
own letter, and my discoveries and representations to the 
Directors, 1 leave the reader to judge. The reader may 
be somewhat surprised, and ask, why was this person re- 
tained in office after his conviction of improper and unjus- 
tifiable conduct ? I answer for myself, by referring to the 
protests in my journal, by which it will abundantly ap- 
pear, that he was retained against my most solemn re- 
monstances, and contrary to all my ideas of right and pro- 
priety. 

The reasons assigned by the Directors, were plausible, 
and may have been sufficient for their course. To me, 
no excuse, no justification, no satisfaction could be offer- 
ed, rendering it either necessary or proper to retain a per- 
son in an office so important, after he had committed the 
most flagrant wrong, and abused the confidence of his pa- 
trons. Explicit directions were given by me to the prin- 
cipal clerks and book-keepers, to watch his motions, to do 
nothing for him, nor allow him to do any thing unless they 
knew it was right, without my knowledge.* In the va- 
rious transactions in which the institution was interested, 
and in the difficulties from which it became essentially ne- 
cessary to extricate it, prudence and consideration were 
both to be exercised. In the detail and consummation of 
so many, and such vexatious subjects, it necessarily fol- 
lowed that a considerable time was required to bring them 
to a close. Independent of rectifying and correcting for- 
mer transactions, it became now indispensibly necessary 
to sustain the reputation of the Bank. If that was once 
lost, all was lost. The consummation therefore of the sub- 
scription of the dormant stock, was necessarily delayed, 
but not abandoned. 


* A full understanding was had between John Leggett, myself, and Rich- 
ard Mott Jr that the Bank should never be left without one of us in it, wtirjch 
was strictly adhered to 


01 


The following paper was prepared and submitted by me foi 


Signatures. 

We, the subscribers, hereby agree to purchase of the Frank- 
lin Bank, the number of shares affixed to our names, respect- 
ively, at par, and to pay for the same in six, nine, and twelve 
months, with interest, at 6 per cent, from the date, provided 
3450 shares be subscribed by the Directors of said Bank. 

It being understood that any subscriber is at liberty to pay the 
money for the stoc' , at any earlier period he may choose. 

Dated , New - York , April 24<A, 1628. 


Samuel Leggett, 
Robert Bogakdus, 
James A. Rurtus, 
Thomas Freeborn, 
Samuel James, 

W. Seaman, 

Henry Astor, 

# G. Furman, 

D. H. Doyle, 


Seven Hundred Shares. 
Five Hundred Shares. 
Three Hundred Shares, 
Two Hundred Shares. 
Two Hundred Shares. 

Five Hundred Shares. 
One Hundred Shares. 
Fifty Shares. 


ENDORSED. 

Could not be effected, because Furman and others hesitated, 
and hung bac<>, and therefore it was given up. 

SAMUEL LEGGETT. 

Time was also required to enable the subscribers to pay 
the amounts consequent upon their subscription, constitu- 
ting vast sums of money, at a time too, when there was a 
great pressure in the money market, and when loans could 
not be procured as readily and easily as they could have 
been many times before or since. These negotiations, 
transactions and arrangements, with many others connect- 
ed with the institution, delayed the necessary measures for 
sustaining and propping up a tottering and lame Bank, se- 
veral weeks, if not months. Among other facts and cir- 
cumstances, which induced my continuance in office, and 


* It is right for me to say this is not a genuine signature, it was written 
by a Director, who I believe took upon himself the responsibility of its being 
confirmed. 


my perseverance under all difficulties, was the advice and 
opinion of the Directorsof the institution — their confidence 
of ultimate success, was uniform and unshaken — their re- 
presentations, from their knowledge of the business, were 
altogether more favorable than mine. 1 naturally, and 
with submission to what I conceived their better judgment, 
yielded my own in part, and was cheered by the high con- 
fidence and resolute purposes of my associates. They be- 
lieved most assuredly that the assets generally would be 
realized, and that the Bank itself would be brought into 
successful and even profitable operation. That such was 
their opinion, ! had no doubt, and 1 have been confirmed 
in this belief, by all my intercourse and transactions with 
them. The semi-annual investigation, usual in such in- 
stitutions, was equally encouraging. The examining 
committee, consisting of Directors G. Furman, James 
A. Burtus, and Henry Astor, were duly appointed, on 
the day of February, 1827, and undertook the exe- 
cution of the duties attendant on their appointment. They 
proceeded in their examination in the usual manner, with 
the entire control of all the books and sources of know- 
ledge, required to ascertain all such facts as might be ne- 
cessary for their report. The time absorbed in the prose- 
cution of this task, necessarily consumed some days. I 
purposely kept aloof from their deliberations — 1 made no 
suggestions to influence the character of their report. The 
result was the effect of their own researches ; and the report 
made to the Directors, the determination of their own 
minds, and their own judgments. The report of this com- 
mittee was made by G arret Furman, the chairman. It 
terminated in asserting, that the state of the Bank was 
such as to warrant a dividend . He accordingly made a 
motion to that effect, as the extracts from my journal, and 
the minutes of the proceeding of that meeting will show. 

I opposed in a most decided manner, the making of that 
dividend, and the subject underwent an animated discus- 
sion. On the question being taken, there appeared an 
equal number ( 4 ) for and against the measure. The pro- 


position was renewed at a subsequent meeting, and under- 
went further discussion, at which other and different Di- 
rectors were present, which resulted after a still more ani- 
mated discussion, in precisely the same manner.* 

1 mention this fact as an evidence of the opinion of the 
Directors, and to confirm the assertion, that although I 
was encouraged by their belief, l did not implicitly yield 
my own convictions, and to show that I was justified in 
continuing the Bank. Subsequently the Legislature of 
this state passed a resolution, that a report should be made 
to them, of which the following is a copy. 

Assembly, 28 ih January , 1828. 

Resolved, That the several Banks and incorporated compa- 
nies, asking or applying for a renewal of their charters, be re- 
quired to report to this house, on or before the first day of March 
next, under oath, the state and condition of their affairs, as they 
existed on the first day of January, inst. in the manner, and 
with the particulars specified in the 20th section, of the 2d title, 
of the 18th chapter, of the first part of the Revised Statutes of 
this state, and that the clerk of this house forward by mail, to 
the proper officers of such corporations, a copy of this resolution. 

In compliance with this requisition, John H. Hill, the 
Cashier, unauthorised by the Board of Directors, under- 
took to obey the summons, and he alone is answerable for 
its contents. 1 aver most solemnly, that it never under- 
went any examination or inspection by me, that I never 
saw it, that 1 never authorised or directed its transmission, 
nor ever knew its contents, until a printed statement, said 
to be a copy, was sent to the institution by Robert Bo- 
gardus, then a member of the Senate. The other Banks 
in this city had come to a determination not to obey the 
call, for reasons which they themselves perfectly under- 
stood. Tney were extremely anxious not to make known 
their impoverished condition at that time, in specie, and 


* See extracts from journal and minutes of the Bank, 


64 


considered it an infringement of their chartered rights. 
This determination was afterwards however abandoned 
and they complied, in form at least, to the call. 

Whether this statement made out for the Legislatdre, 
be true or false, or whether it be deceptive and ambiguous, 
is not for me to determine, neither is it required for my ex- 
culpation. If that statement has led men astray, 1 had no 
agency in framing or reporting it, and am not answer- 
able for its contents. It was not possible to make a satis- 
factory statement, according to truth, at that tune, and 
perhaps few, if any readers of the statement, could find 
out what it really meant or amounted to. That such is 
the fact, 1 know.* It w T as in character with the general 
chaos surrounding the institution, and in accordance with 
the confusion, and perhaps what is worse, with the ma- 
ker’s own mind. That such are the facts in relation 
to this statement, can be most satisfactorily and sub- 
stantially proved, by a number of the Directors of the 
institution ; and it is remarkable, that not one of them, nor 
even any of the clerks of the institution, to the best of my 
knowledge and belief, ever saw it before it was transmit- 
ted to Albany by J. H. Hill, reported to the Legislature, 
and a printed paper, said to be a copy, returned by Robert 
Bogardus.t 


* There was a great discrepancy between Charles Wilkes and John De- 
lafield, when examined on the trial before Judge Oakley, and the learned 
Judge, who had a very clear view of it, made the assets $300,000 less than 
those gentlemen, and some first rate accountants, and officers of Banks, have 
corroborated the explanations of Judge Oakley — others again have made the 
Bank insolvent 50 per cent from the same statement. 

t That Director had left this city, for Albany, under great concern for 
the. welfare of the institution, and he believing this d >cument was important 
to the Directors, sent it down for their consideration, being unable himself 
to understand it, or to know why and wherefore it had been so obscurely fra- 
med Pains were taken that it should not appear in any cf the public pa 
pers of this city, and to the best of my knowledge it never was published ip 
New-York. 


* 


65 

The credit and condition of the Bank became daily, 
worse in the public estimation ; its bills in some degree 
fell into disrepute ; its stock depreciated in value in the 
market; public confidence was manifestly and clearly im- 
paired in its stability, if not its solvency. A suspicion pre- 
vailed every where, that the institution was laboring under 
great difficulty, and rumor pronounced it insolvent. To 
add to this untoward state of things, depositors withdrew 
largely their accounts, and holders of bills, were anxious 
for their redemption. The circulation of the notes of the 
institution, which as has been before remarked, had al- 
ways been large, was now materially lessened, and this as 
well as other causes before stated, reduced the means of 
the Bank, and its facilities of business, in a most essential 
manner. Amidst all these conflicting difficulties, it may 
be superadded, that some other Banks of this city, express- 
sed their doubts in relation to this institution, and their of- 
ficers, or some of them, circulated in loud whispers, 
apprehensions and opinions in relation to the Franklin 
Bank — (such were the causes that led to a “ run upon 
the Bank,” on the 17th of July, 1826, previously to 
my being elected the President ; the alarm of which had 
partially subsided, and public fears and apprehen- 
sions had abated, but confidence had never been fully 
restored.) The circumstance of some of the Banks now 
refusing to take Franklin Bank bills at their counters, and 
the Branch Bank of the United States making known 
their determination not to receive bills, unless they were 
at all times secured by funds in their own hands, to meet 
them, created new difficulties, and seemed at once to put 
an end to future hope. A letter was received on the day 
of its date, from the Cashier of the Branch Bank of the 
United States, in this city, of which the following is a 
transcript. 


I 


66 

Office Bank United States. 

May 28,1828. 

Dear Sir , 

It is my duty to inform you, that I have received positive di- 
rections, not to take your notes for an amount exceeding your 
balance in Bank. 

Your obedient servant, 

Very respectfully, 

M. ROBINSON, Cashier. 

John H. Hill, Esq. Cashier. 

On the same day that the above letter was received, 
there was a partial run upon the Bank, and some of the 
Mechanics and T radesmen of the city, and at the market 
places, as I was informed, and believe, refused to receive 
Franklin Bank notes, and it was publicly asserted, and 
loudly rumored, that there would be a general run on 
the following day, 29th May, 1828. 

The funds of the Bank at this time, in specie, and in bills 
of other Banks, amounted to a very small sum of money, 
in proportion to the exigency, the whole amount of which 
was entirely inadequate to meet the expected demand or 
run, and did not exceed in specie, and other available 
funds, it is fully believed. $30,000. A great part of this 
amount, would in the course of business, undergo an ex- 
change at the respective Banks in this metropolis, on the 
morning of that day, so that there was a moral certainty, 
that unless funds were raised, and that immediately, the 
demands on the Bank could not be met at the counter, and 
the institution would of necessity and as a matter of course, 
stop payment on the 29th of May, 1828. To avert this 
catastrophe, and to meet the expected exigency, I sum- 
moned the Directors to meet in the evening, to take into 
consideration the condition and affairs of the institution, 
in its then perilous situation. They met accordingly, and 
I gave my views to the members then present, consisting 
of Henry Astor, William Seaman, Samuel James, Garret 
Furman, James A. Burtus, and Robert Bogardus, and 


67 


proposed as a remedy for the existing wants of the institu- 
tion, the adoption of one of the following means ot relief. 

1st. To assume individual responsibilities for raising 
$100,000 in funds, and if that could not be effected — 

2d. To procure an injunction from the Chancellor 
against the Bank, or — 

3d. To stop payment at the counter. 

The first of these proposals 1 urged with great force, so- 
licitude, and sincerity, and avowed my entire willingness 
to advance a liberal amount to make up the funds requi- 
red. 1 offered repeatedly to furnish $20,000, and decla- 
red myself content to lose the whole sum, rather than ex- 
perience the calamity which otherwise appeared inevita- 
ble. The other Directors then present, were equally anx- 
ious to avert the pending danger, and with the exception of 
one, appeared willing to contribute liberally, to carry ihe 
first requisition into effect. That one, obstinately, and 
with hostile feelings, refused to co-operate in raising the 
money required, in the manner proposed. After an elabo- 
rate discussion, and various suggestions and projects, the 
raising of the required fund, failed of success, and the 
Board adjourned without coming to any determination. 
Placed in this situation, with a full knowledge of the dis- 
asters that must occur very shortly, most probably on the 
following day, I found myself exceedingly embarrassed, 
and laboring under responsibilities which I knew not how 
to sustain. Between the other two propositions submitted 
to the Directors, it appeared to me that of enjoining the 
Bank was manifestly the best, and in the furtherance of 
this measure, T procured proceedings and papers, prepara- 
tory to my application to the Chancellor. Between the 
hour of adjournment of the Board of Directors, and the fol- 
lowing morning, having possessed myself of all these docu- 
ments, I repaired to the dwelling of Lynde Gatlin, inform- 
ed him of the condition and state of things as connected 
with the Bank, and solicited him to accompany me to the 
Chancellor’s chambers, to procure the injunction — he did 


68 


so. The Chancellor, on perusing and considering the ap- 
plication, (which required some alterations) allowed the 
injunction, and it was duly served on the morning of the 
29th of May, 1828, about 20 minutes past ten. It was 
my intention and wish to have had the process served at 
the Bank, before the hour of 1 0 o’clock, the time at which 
the Bank usually opened. In this, my expectation, I was 
grievously disappointed, by facts and circumstances not 
within my power to control, so that process was not served 
until after the Bank opened, and some business had 
been transacted. 

The institution being thus enjoined, the doors were clo- 
sed, and the business necessarily arrested. The excite- 
ment produced by this proceedure, was of the character 
usual on such occasions, but not marked by any acts of 
violence. After the service of the injunction, the institu- 
tion w 7 as under the control and supervision of the Directors 
and their Cashier, John H. Hill. It may be proper here 
to remark, that the night previous to my making applica- 
tion to the Chancellor for the injunction, I resigned the of- 
fice of President and Director of the institution, and for 
that reason I had no further charge of the affairs of the 
Bank, and did not interfere with the concerns thereof, after 
that period. On the 2d of June, 1828, James Kent was 
appointed Receiver, and this appointment having been 
communicated to me, I immediately transmitted to that 
gentlemen, a note, of which the following is a copy. 

6mo. 2d, 1828. 

James Kent, 

Respected Friend , 

I am much pleased with the proceedings of the Chancellor, 
in the appointment of a Receiver to the Franklin Bank, and 
hold myself ready and willing to give every explanation in my 
power. There is much with me to communicate, of a close and 
serio is nature, relating to the institution, which for the interest 
of its creditors, will require great prudence and discretion. 


09 


Any time that thee may appoint, I will see thee, and commu- 
nicate ail i know. 

Respectfully, &c. 

SAMUEL LEGGETT. 

To this note 1 never received any direct answer, unless 
the note from the Receiver, (of which the following is a 
copy) bearing date 27th June, thereafter, can be so con- 
sidered. 

Sir, 

When will it suit your convenience for me to see you, and 
converse together, relating to the concerns of the Franklin 
Bank. 

Your’s respectfully, 

JAMES KENT. 

Samuel Leggett, Esq. 

Will this afternoon, at your house, or my office, Cedar-street, 
or my house, or to-morrow, at either, and when suit you 1 I 
want to ask you information on points. 

On the receipt of this note, 1 immediately wrote the 
following answer. 

Gmo. 27th, 1828. 

James Kent, 

Respected Friend , 

I am on jury, and have been for two weeks, but will proba- 
bly be discharged to-morrow. 

I shall be at leisure this afternoon, unless I happen to be 
drawn on jury ; if I shonld not be, (which I think I shall not) 
I shall be pleased to see thee at my house, this afternoon, any 
time after four o’clock, or evening, as will suit thy convenience, 
and will give every information in my power. 

Respectfully, 

SAMUEL LEGGETT. 

An interview took place the same day. On this occa- 
sion I had a verbal explanation with him, as particularly 
and fully as the time afforded would admit, and showed 
and put into his hands my protest and journal. He ex- 
pressed great surprise and astonishment at the contents ; 
inquired what, in my opinion, was necessary immediately 


70 


to be done. 1 gave him for answer, that the first proce*- 
dure for the safety of all interested, demanded the dismis- 
sal of John IL Hill , who np to that period, had the entire 
disposition and possession of the Bank property. He 
acceded to this suggestion, and John Leggett was substi- 
tuted in his place very soon thereafter, probably upon my 
recommendation. It will therefore appear, that from the 
second of June until about the last of that month, or for a 
period of about one month, John H. Hill had the posses- 
sion or control of the institution, its bills, papers, (fee. (fee. 
and it is to be further remarked, that during this period he 
was in the Bank by night as well as by day; that he had 
the keys of every part of the institution ; access to every 
part thereof, and no person could obtain information ex- 
cept through him, whenever it was necessary to inspect 
the Bank accounts for any object. This confidence in 
John H. Hill was a subject of great alarm and uneasiness 
to myself and some other gentlemen deeply interested in 
the institution, and led to a very serious remonstrance and 
protestation to Chancellor Kent, for intrusting to him so 
important a station, before as well as after his appoint- 
ment. These remonstrances arose from a conviction that 
his conduct had been so erroneous as to render his agency 
improper if not perilous. Representations, hojwever, were 
made at a very early day, soliciting the receiver to ap- 
point and continue John H. Hill in the settlement of the 
institution, by persons of the most respectable standing in 
life ; and it may be owing to this fact that no apprehen- 
sions were entertained, and that he was continued for so 
long a time. It is but right also to say, that Richard 
Mott, Jr. a clerk now in the Bank of New- York, of un- 
exceptionable character, was employed by the receiver, 
to assist in writing up the books at the same time. 

The affairs of the Bank after this period, proceeded 
more immediately under the supervision and control of 
the receiver. 

John Leggett (who had b£en a valuable and faithful 
clerk in the Bank) performed merely the duties of clerk, 


71 


and as specially directed by the receiver or his counsel. 
Tn the examination made by the clerk so appointed by the 
receiver, further and new defalcations (as 1 have been in- 
formed by said clerk) were discovered to have been com- 
mitted by John H. Hill. These new developements, it is 
said, arose when the books of the Bank underwent a tho- 
rough examination, and the numerous accounts of the in- 
st* ution were balanced to ascertain for the guidance of 
the receiver, the money due by the institution to its nume- 
rous creditors. Among these were several Banks in other 
states, with which the Franklin Bank had accounts. The 
new defalcations now discovered could not therefore have 
been detected by me in the examination made previously, 
nor was it possible to detect them until after the books 
were balanced, and the accounts of such foreign Banks* 
were rendered, showing with precision their true condition. 

It will be thus seen how the affairs of this institution 
came to the crisis which took place on the 29th of JVJay r 
1828, over the affairs of which I had acted as its first offi- 
cer, for about seventeen months preceding that period. 
That this event, which arrested the institution in its regu- 
lar business, arose from facts and circumstances wholly 
out of my power to prevent; that having labored most 
assiduously to avert the catastrophe, gratuitously bestow- 
ing my labor, time and exertions in furthering the best 
interests of the institution, and striving to save it from 
waste and ruin, by the sacrifice of my time, labor and 
money — all, all were overcome by obstacles which I could 
not surmount by any conceivable means in my power. 
The assets of the Bank as delivered over to the receiver, 
according to his report, amount to $777,232.38. By the 
same report, it appears that there was due from the 


* I have been informed, and believe that John H. Hill, Cashier, while the 
Bank was in operation, wrote the Cashier of the Bank of North America, 
(Philadelphia) that they might dispense with forwarding accounts current, 
for the truth of which I confidently refer to that gentleman, and of latter 
time they were not sent as 1 believe. 


78 


0 


Bank to depositers, bill-holders, and to other institutions, 
$486,671. It appears, therefore, that if all the assets could 
have been collected, there would have been a sufficient 
amount to have paid all the debts due by the Bank, and 
to the stockholders, the whole of their money, at par, leav- 
ing a balance of $33,061.38. 

From the foregoing estimates, as made by the Receiver, 
the correctness of which cannot be doubted , it will manifestly 
appear, that the funds of the institution had all been dis- 
posed of by its officers or Directors; that the great deficit 
ency had arisen from loans, unfortunately , if not injudi- 
ciously and improvidently made ; and that these borrowers, 
and others, who had possessed themselves of the funds of 
the Bank, had absorbed the capital of the institution, with 
that of the depositors and bill-holders. It is not within the 
ingenuity of man to assign any other true cause for the 
deficiency. 

It is proper to remark in this place, that ail the Directors 
are great losers by their connection with this institution. 
They must of necessity all have been stockholders, and 
some of them had vested very large amounts in its capital, 
besides they were depositors and bill-holders , and suffered 
therefore in an essential pecuniary point of view, to a 
greater degree than any other losers of the same number 
who can be named. In addition to these sufferings, they 
underwent the most excruciating mortification in feelings, 
reputation and respectability. No men ever had the wel- 
fare of an institution more sincerely at heart ; no men can 
be found who would have taken upon themselves more in- 
dividual and personal responsibility to relieve and succour 
the distress and embarrassment under which it labored, 
and no men have ever been more grievously deceived. I 
confess that their offers and disposition to do still more, 
and make yet greater sacrifices, excited my astonishment, 
as well as my admiration ; and it was owing, perhaps, to 
this circumstance, and my association with them, that I 
was induced to make so liberal a subscription in the pur- 
chase of the dormant stock, and to hazard the sum of 


73 


$35,000 of my personal funds, for the general relief and 
benefit of the institution. In doing this justice to my fel- 
low laborers, it is not to be disguised, and they will not 
censure me for the remark ; for it is palpably true, that 
their officers made improvident and unsafe loans in the 
administration of the institution, from which ensued all, 
or nearly all, the misfortunes which befel the Bank. 

I have taken occasion heretofore to give a general view 
of the affairs and the monied concerns of the Franklin 
Bank, and I shall now proceed to add come other remarks 
on the same subject. When I commenced my official 
duty at the last period, as President, I found the concerns 
complicated, involved in perplexities, and embarrassed in 
every way: the whole aspect and character of its affairs 
had sadly changed since I left it ; it was largely indebted 
as well to individuals as to other institutions. Besides 
these debts, I found that the Directors, or some of them, 
had assumed vast responsibilities to succour the institu- 
tion, and afford it temporary relief. 

These responsibilities so assumed, amount to (I believe) 
about $350,000, for which they had no collateral or any 
kind of security whatever. The general situation of the 
institution excited a lively interest in my mind, and the 
responsibility, so individually assumed, adding much to 
my anxiety for their interest and ultimate safety, was an 
additional reason for my desire to realize funds from the 
dormant stock, and I did not hesitate to urge this as one 
reason why the Board should be spirited in consummating 
that arrangement. When the doors of the institution 
were closed, and the arm of the law had reached it, upon 
my application, various and repeated conversations took 
place between the Directors in an informal way, in rela- 
tion to the dividend which might be realized by its credi- 
tors and stockholders. The accounts of the depositors 
and all other debts of the institution were nearly ascer- 
tained with precision, and the only class of creditors whose 
claims remained in doubt was the bill-holders. The 
amount of bills in circulation, had long been a matter con- 

K 


&idered and estimated by the officers and book-keepers of 
the Bank. The issues had been examined, and the ac- 
counts in that respect carefully collated, and the result 
was ascertained to the satisfaction of all, that it did not 
exceed $ 65 , 000 . Such was the effect of the most rigid 
scrutiny, in which all concurred, and none maintained its 
correctness with more certainty, and with more firmness, 
than John H. Hill, the Cashier. On the day on which 
the Bank was enjoined, as well as before and afterwards, 
he declared to different Dhectora and dealers, that it could 
not possibly exceed that sum. This estimate of bills in 
circulation, the Directors all believed to be correct, as well 
from the calculation of the books, and the asseverations of 
the Cashier, as from the course of exchange of paper 
which took place between this institution and other city 
Banks, in the usual and known manner. 

This estimate of circulation was made known by me, 
with confidence and sincerity, to Lynde Catlin, Charles 
Wilkes and otheis, in my consultations with them a few 
days before the injunction was obtained, and John H. Hill, 
the Cashier, loudly mentioned the circumscribed circula- 
tion of the Bank, and the limited sum of its issues, that it 
could not exceed the sum of $ 65 , 000 , and that there was 
no reason why the injunction should have been procured, 
and censured me severely for having been the principal in 
the procedure. In all calculations and estimates made 
by the Directors, as far as the circulation was concerned, 
the sum never exceeded $ 70 , 000 , and some of them made 
it much less, and founded their opinion on the declaration 
of John H. Hill, the Cashier, who confidently asserted 
that it could not amount to $ 60 , 000 . Upon this assurance, 
and after these representations, the reader will be equally 
surprised with myself, and every other officer of the Bank, 
to learn that the bills returned to the Receiver, and upon 
which he had to make a dividend for the notes in circula- 
tion, exceeded $ 146 , 000 , and more are coming in daily. 

There is not an individual connected with the Bank, 
and it is believed all of them have taken pains to come at 


75 


the truth, who believes that the amount in circulation re- 
turned to the Receiver, was bona fide and fahly issued* 
The mortification, disappointment and loss resulting from 
this source, has led to conjectures, doubts and difficulties, 
which no one has been able satisfactorily to explain. It 
is the only important loss that the institution ever sustained, 
which cannot be in some degree, and perhaps entirely ac- 
counted for. This is a dark and mysterious concern ; sus- 
picions may light possibly, and probably do somewhere, 
but it can never be unravelled with common certainty, and 
must therefore remain where it is , and as it is , without fur- 
ther comment. 

It is true that there are facts in my possession, and with- 
in my knowledge, which arouse strong suspicions in my 
mind, but they are not such as to authorize me to enlarge 
upon the subject, or to indicate any one as the absolute 
author of this dilapidation. 

It will therefore appear evident to the reader, that in 
addition to the difficulties which 1 had ascertained to a 
certainty, and which I was endeavoring to overcome, I yet 
had to encounter a hidden adversary, that instead of meet- 
ing and redeeming an amount of circulating paper, which 
1 confidently supposed w 7 as narrowed down to a small 
and certain sum, there might have been an excess in cir- 
culating bills at that time, which did not come into the 
general calculations and arrangements of the institution. 
This error, if such it may be called, would never have 
been even dreamed of, nor could it ever have been de- 
tected under the circumstances, except by the manner 
which the affairs had been closed, and by their presenta- 
tion to the Receiver. 

It is manifestly true, that besides this there were other 
funds, secretly if not surreptitiously purloined fiom the in- 
stitution, and all, or nearly all of them, before the period 
of my last appointment. 1 cannot be answerable for mal- 
versations or dilapidations, where I had neither power, 
agency or control ; and whatever may have been done un- 
justly, imprudently, wantonly or wickedly, previous to my 


76 


induction into office, cannot in common justice be charge- 
able to me. Jt is sufficient for my justification, that 1 
watched with more than ordinary circumspection, exa- 
mined with minute attention, and supervised with parti- 
cular scrutiny, the daily occurrences at the Bank, and the 
general transaction of its affairs. I lent my whole atten- 
tion — gave the whole of my power of management to pro- 
tect the vital interest of the institution, and to restore it to 
health, vigor and prosperity.* To this 1 was urged by a 
sense of moral duty, by self-respect, and by the esteem 
and regard which I wish to claim and to be just ly entitled 
to from my fellow Directors and the public. My life has 
been devoted exclusively to business, and my habits have 
been industrious and sober : my success has equalled that 
of my cotemporaries. I have transacted business to a 
vast amount, and necessarily have been connected and 
had communications with a great many men, and with 
many institutions. In all these responsibilities (perliaps) 
difficulties may have arisen, but they were incidental 
to my pursuits, were to be met with firmness, submit- 
ted to with patience, or to be overcome, according to cir- 
cumstances, in the usual adjustment or settlement of pecu- 
niary affairs. But my troubles and misfortunes, conse- 
quent to my official situation as President of the Franklin 
Bank, have given me more pain, anxiety, mortification 


* In the observations which I have made relative to my agency, I do not 
wish to be arrogant, nor to impress a belief that I did more than my duty. 
It is true, on my return, I expected to perform more, and assume more in the 
daily transactions of the Bank than is usual for the first officer, but this was 
understood when I was called back, and additional arduous duties were as- 
signed me voluntarily by the Directors. I am unwilling to take any thing 
as a credit to myself at their expense I have before said they were 
very lemarkable men, anxiously endeavoring to preserve the institution, 
and I repeat it again with emphasis — and I cannot close without saying, L 
received great support and information from the clerks in the Bank at the 
time of its failure, and that their conduct was faithful and correct, to my 
entire satisfaction Three of them are now employed in responsible situa- 
tions in the Bank of New-York, and the other two in public offices. All of 
them, 1 am proud to say, deserve the full confidence of their employers. 


77 


and regret, than all the other avocations in which I have 
participated. That 1 have been assailed, traduced and 
villified, is known to all, that I have not deserved it ; that 
I have not been instrumental,, directly or indirectly, in the 
misfortunes and losses of those who have suffered in their 
feelings and fortunes, from the deficiency of funds in this 
institution, is most solemnly true . I never signed a bill of 
credit of the Franklin Bank during my last term of office, 
except post notes endorsed by the Directors, as facilities 
to hire money for the Bank. For seventeen months and 
more of hard and anxious labor, I never have received any 
pay or compensation whatever. The institution never 
loaned a sum of money during my last term, other than 
renewed debts on which it sustained a loss of one dollar. 
My exertions were exclusively devoted to its general wel- 
fare, and its restoration to prosperity. 1 had left it flourish- 
ing, successful, and in the highest degree of public confi- 
dence ; 1 came back from motives justifiable and com- 
mendable. What has been the consequence, need not 
again be repeated. 

It now T becomes a duty to make a few additional re- 
marks, and I proceed to the task in sincerity and in truth. 

It will have been seen what amount of assets were de- 
livered to the Receiver of the institution, and the creditors 
of the Bank know by sad experience, that their dividends 
have been small and meagre ; the two instalments already 
paid only amounting to thirty-three cents on the dollar, 
and there is a strong probability that the remaining divi- 
dend will be a very trifling one. It is obvious to every 
capacity, that these means, and these funds, so delivered 
over to the Receiver, constituted the only foundation on 
which 1 was to erect the lame and crippled condition of 
the Bank. It is true, however, that in closing its con- 
cerns, great and extraordinary expenses have been incur- 
red ; the manner of terminating its business rendered it 
necessary ; costs and charges in many forms have been 
unavoidably made in the regular discharge of the Re- 
ceiver’s duty; besides these he was himself entitled for 


78 


bis onerous and complicated duties, to the regular and 
legal compensation. What all these expenses in the 
aggregate amount to, is not my business, neither is it 
connected with my defence, nor have I any means of 
ascertaining. They must, necessarily be large. The 
funds put at his disposal, in their nature and character, 
were variously situated, and required great management, 
judgment and experience, as well as an intimate acquaint- 
ance with the debtors and their respective characters, &c. 
They were divided and subdivided into many shapes and 
sums, and no man entering upon the secernent of the 
affairs of an institution thus conditioned, could realize from 
such a mass of accounts, as much as those who, from their 
previous situation, had become more familiar with, or had 
more intimate knowledge of the transactions now to be 
closed and terminated. It will occur to the reader, that 
any institution or individual mercantile establishment, 
compelled by the arm of the law, or by the force of cir- 
cumstances, suddenly to wind up their affairs, always ex- 
periences unavoidable and unforeseen losses. Such is 
emphatically, and with great additional force, the effect 
upon a monied institution in any and every manner ; and 
the truth of this assertion would be fully and plainly illus- 
trated, by citing the results which have ensued in many of 
the monied institutions in the city of New-York, which in 
closing their accounts, have been under the guidance of 
agents appointed by the rules of law. These instances of 
insolvency, familiar as well to business-men as to others, 
have afforded but a sad comfort to those interested, and 
are lamentable commentaries upon our local monied in- 
stitutions. Vast amounts of property have been dissipated 
or lost by these investments, to the lasting distress of many 
unfortunate and interesting creditors ; and in every insti- 
tution where money is to be invested, there are to be found 
stockholders of a tender and peculiar character ; monied 
institutions, as wadi as those of charity and benevolence. 
Trustees of lunatics, and such who are rendered incapable 
of managing their own affairs, of widows, guardians of in- 


fant children, ministers of justice, executors and others , inci- 
dental to the numerous concerns of pecuniary transactions, 
place their money in the capital stock of the institutions of 
the country, and when a calamity happens, the evil conse- 
quences fall alike upon them all. It necessarily happened, 
that among others who were creditors of this institution, 
there were some who in consequence of their investments, 
suffered from its suspension, in the most heart-rending and 
afflicting manner. The very locationof the institution gave 
it custom of a peculiar character, and rendered its dissolu- 
tion disastrous in the extreme. No man could have felt 
these misfortunes and miseries with more keenness and sym 
pathy than myself, and cases came within my knowledge, 
creating an anguish which it is not in my power to de- 
scribe. The ruin and loss which occurred to such, have 
been endured by some of them with fortitude and reason- 
able forbearance, while others have not ceased to pour 
forth their anger against me in the grossest terms of abuse 
and causeless vituperation. I am assailed even to this 
day. 

These assaults and slanders upon my feelings and repu- 
tation, have caused me great disquietude and much un- 
happiness, and were it not that I could fully console my- 
self that 1 never had done any thing deserving of such re- 
proaches and slander, 1 should be the most miserable of 
men ; my quiet and repose is not yet restored, and proba- 
bly will not be, so long as my revilers live to feel the priva- 
tion of their property. But from those who can better 
understand, duly appreciate, and candidly consider my 
conduct in relation to the Franklin Bank, I have reason 
to expect, and therefore fondly hope better treatment, and 
a more kind feeling. 

After the appointment of the Receiver, he had quiet and 
undisturbed possession of all things, and after consuming 
four weeks in the examination of the state of the funds, 
&x. in his hands, from which he was to make distribution, 
with the aid of the most indefatigable, intelligent and able 
accountant, he published as the result of his inquiries, that 


80 


the creditors had reasonable prospects of being paid within 
two per cent, of the amount of their debts. This repre- 
sentation may be fairly presumed to be his deliberate 
opinion and best judgment, formed upon mature considera- 
tion, and the advice, judgment and opinion of his friends act- 
ing as counsellors and advisers : for no man will have the 
hardihood to accuse Chancellor Kent of having held out 
delusive or insincere representations, more especially in a 
case requiring particular care, marked circumspection and 
caution. That his opinion, as well as that of his friends, 
were erroneous, the result of his administration abun- 
dantly proves ; and while every man will give him credit 
for industry and exertion, and allow him all the benefit of 
these, is there not equal room for indulgence in other quar- 
ters, and more cause for mitigated censure of the mistakes, 
opinions and belief of my associate Directors and myself ? 
Let every man answer this question in candour and in 
truth, and if 1 am not egregiously mistaken, it will be one 
greatly extenuating their fault, if not entirely absolving 
from all harsh allegations, the Directors of the institution. 

If the assets of the Bank had been placed under the 
guidance of those who best knew its concerns, I hazard 
nothing in asserting that a much larger dividend would 
have been made amongst its creditors, than can now ever 
be expected. This position, it is believed, will not be 
denied. 

The restraints and regulations imposed by law upon the 
agent who closes the concerns of a monied institution, 
may be necessary in a general way, but they ill comport 
with the concerns and character of an institution situated 
and circumstanced like the Franklin Bank. Without 
power or discretion to choose that which his better judg- 
ment would lead him to accept, the Receiver must be con- 
strained to view 7 his directions and authority, and act in 
putsuance to their cold and rigid rules. There is no room 
left for the exercise of judgment in the manner incidental 
to individuals acting as principals, and if he could procure 
the power and authority to accomplish any special objects, 


81 


the opportunity might be lost (and often would be) before 
he could consummate the transaction. 

The character and integrity of James Kent does not re- 
quire my commendation, nor will his motives either be im- 
pugned or questioned. In the more elevated walks of 
life, in the performance of the arduous and responsible 
tasks which he has so faithfully and satisfactorily exe- 
cuted, in his long public career, the boon of approbation 
has been cheerfully bestowed; but the duties of a Re- 
ceiver, were new and altogether different from any em- 
ployment in which he had been engaged. This new con- 
dition naturally brought with it new troubles, in which 
neither the profound mind of the Receiver or his laborious 
study, could avail any thing. It was financial and mer- 
cantile in the most perplexed form, and even the virtues 
and learning of Chancellor Kent in these duties, ope- 
rated to the disadvantage of the parties interested in the 
property committed to his charge. 

When Chancellor Kent, therefore, assumed the settle- 
ment incidental to his trust, he had new grounds to tread, 
and his way was embarrassed by unforeseen and unex- 
pected difficulties ; it was from its nature perplexing, and 
various as to the mode of adjustment. 

The Bank was no longer in regular operation ; creditors 
and makers of notes did not feel the responsibility and 
duty to be punctual in payment, which is usually expected 
in these cases. Some of them were, perhaps, unable to 
meet their debts as they became due, and many, regard- 
less of their responsibilities, seemed willing to pr ofit by the 
general scramble ; and prompt to avail themselves of the 
unfortunate condition of the institution for procrastination 
or delay, or for unjustifiable reasons, showed a disposition 
never to pay at all. Amidst this general confusion and 
contrivance, it would be strange, indeed, if there had not 
been consequent and unexpected losses, in spite of all the 
assiduity and care exercised by the Receiver and his best 
advisers. It could not be otherwise — human foresight, 
proverbial prudence, and the most minute attention, were 
L 


all insufficient to guard against the machinations and mis- 
representations of such a collection of debtors ; and while 
Chancellor Kent, in the discharge of high and official du- 
ties. is well known to have the most discriminating mind, 
yet in a case like the present, that intellectual force was 
So far from aiding him, that it became necessarily prejudi- 
cial 5 so true it is, in all the avocations and duties of life, 
that a man who may be truly and justly great in very im- 
portant and grave matters, may for that very reason, lind 
himself deficient in the minor concerns of business. I 
may therefore now say, according to the old adage, 4k every 
man to his trade;” and I do humbly contend and most 
confidently believe, that if a committee appointed from the 
Bank Directors could have had the management of the 
concerns, a most material difference would have been 
produced on a final liquidation. 

I have already given a pretty detailed account of the 
history and concerns of this institution, as far as my con- 
nection with it extends. There are a few remarks which 
it is proper to add. It will have been perceived, that con- 
fusion, defalcation and dilapidation , had by some means or 
other crept into the Bank before I was placed at its head; 
that its funds had been dissipated, or distributed in such 
a manner, that they could not be commanded; there had 
been during my recession, alterations and arrangements 
made in their character entirely new, and to me strange. 
A new office had been created, that of Vice-President ; not 
recognized by the act of incorporation, nor required, ac- 
cording to my opinion, for banking purposes. The person 
selected for this trust was Robert Bartow, a Director, 
chosen, as 1 believe, some six months after I had left the 
Bank in the year 1 825. His agency in the Bank appeared 
to have been various and important, but I cannot say use- 
ful or necessary. From the books it will appear that he 
accommodated himself with open-handed liberality ; that 
when I re-commenced my official duty, he was by far the 
largest debtor to the institution, and that he had been in 
the habit of overdrawing his account, or the account of 


R. and G. Bartow, to a frightful amount j all of which 
will be verified by a reference to the books and accounts 
in possession of the Receiver, to which I confidently refer. 
The various accounts kept by this Vice-President gave 
me great trouble, and were more difficult of adjustment 
and settlement, than any other transactions in the institu- 
tion. These accounts were complicated in the extreme, 
and featful in amount. It was my duty and consequent 
determination to put an immediate stop to these improprie- 
ties, and secure the interests of the Bank as far and as soon 
as possible. I succeeded with great difficulty and for- 
bearance, in obtaining and securing a very great propor- 
tion of these liabilities, and 1 think the amount so restored 
to the coffers of the institution, exceeded the sum of 
$1 30,000 ; and if my memory serves me, the whole amount 
of commitments to the institution had atone time exceeded 
$ 400,000. To enable the reader to test the assertion last 
made, I refer him again to the books of account with the 
Receiver, begging leave further to remark, that on the 
closing of the Bank, there was a large balance in this 
quarter still due to be collected by him, with what success 
he can best explain. The transactions will be found to 
be multifarious, and not in the usual or common course of 
banking operations; and it cannot be expected, nor is it 
necessary for me to enumerate them at this distant period. 
It is sufficient for my justification, that 1 terminated all 
further improprieties as far as was in my power, immedi- 
ately after I entered upon my official duty, and that I 
closed his and their sundry accounts, with as much expe- 
dition as I conceived my duty (consistently with the in- 
terest of the institution) demanded. I could with equal 
propriety and truth, detail other cases, various in their 
amounts and complicated in their nature, which I had to 
unravel and finally correct; none of them so large as the 
multiplied accounts and transactions oj Robert Bartow , but 
collectively, they formed an aggregate amount which ren- 
dered their adjustment, liquidation and correction of vital 
importance. By my interposition in these manifold trans- 


84 


actions, 1 restored to the institution a very large portion of 
its money, and saved for it, as well as for the Directors 
and others concerned, very large sums.* I need not now 
indicate those particular cases, but reference to the books 
can easily and plainly demonstrate the truth of these alle- 
gations. 

I have thus in candour and in truth, made a fair and 
full exposition of the subject under consideration. That 
the facts which I have narrated are true, and do not ma- 
terially depend upon my individual assertion, is most ap- 
parent. All that are essential according to my apprehen- 
sion, are susceptible of documentary proof; and those proofs 
not framed for my purpose, but formed in the due course 
and unguarded manner commonly pursued in the trans- 
action of business, without the remotest probability that 
they ever would be called for in the manner, and for the 
purpose now proposed. The facts and circumstances 
now relied on cannot be false ; they were not framed nor 
created by me for selfish purposes under false pretences, 
nor in self-defence ; they are ordinary and daily occur- 
rences in every other monied institution,! and bear the 
marks and evidences of undeniable truth and unerring 
history . 

It would be preposterous and absurd in the extreme, to 
give to these documents any other interpretation, meaning, 
or character. 

I rely therefore upon these evidences, as important and 
incontrovertible. I refer to them with entire confidence, 
and invite every scrutiny and investigation. From these 
examinations, I do say, that I have been a most injured 
man, and I say so boldly, fearlessly, and confidently. 

Having thus disposed of the main subject in such man- 
ner, and with such means of information, knowledge and 
recollection as were within my reach, I shall proceed to a 


* It is difficult for me to give the precise sum, but think it within bounds 

to say $300,000. 

t So far as daily entries are concerned. 


85 


close of these considerations. All that T ask of the public 
is, to consider with candor and fairness, the whole course 
of the conduct wherein I have been engaged, and for the 
transactions of which I have been most unjustly defamed, 
my feelings have been lacerated, my character stigmati- 
zed, my comforts disturbed, and my whole life brought 
down to a state of wretchedness and misery, by unmerited 
obloquy, in the most hideous, wicked, and accumulated 
forms. Attempts have been made at various times to dif- 
ferent Grand Juries, by sundry persons, to have me indict- 
ed as a criminal — prosecutions to a great extent have been 
instituted, to make me personally and individually liable 
for the losses sustained in consequence of the failure of the 
Bank. Illiberal, prejudiced, unfortunate, and perhaps un- 
informed creditors, have insulted me in the streets, in the 
market places, and at public sales. Myself and my fami- 
ly hooted at, for alleged peculation in the funds of the 
Franklin Bank. The property which I possess, earned 
by a long series of successful business, and saved by a life 
of rigid economy and industry, has been pointed out by 
passing creditors of the Bank, as the spoil of their losses, 
ill-gotten plunder, snatched by me in the wicked dilapida- 
tion upon their property. My sufferings and my feelings, 
from these causes, can never be described to any other per- 
son, and I am not so uncharitable as to wish, that they 
should learn to value them by experience. I have borne 
these injuries, and undergone these sufferings, only from 
necessity and constraint. 1 should have felt* it a paramount 
duty long since, to have come forth with a manly confi- 
dence, and the boldness of innocence, but for the restric- 
tions laid upon me by the cold and unrelenting hand of the 
law — my counsel warned me against this appeal — they en- 
joined me from doing that which I now do, (against the 
opinion of some of them) at my peril, and as I valued my 
personal liberty ; but the cup of my patience is exhausted, 
forbearance is no longer to be expected, and my reso- 
lution is fixed ; let the consequence «be as it may, this state- 
ment shall go forth for the public eye, and for public consi- 


% 


86 


deration ; I owe it to myself, to an affectionate and ten- 
der family; to numerous friends, who have sustained me 
by their counsel, solaced me by their friendship, and upheld 
me by their respectability, to come forth, and fearlessly 
conhont my accusers and defamers. 

Without assuming to myself any thing more than the at- 
tributes of common honesty — without attributing my mo- 
tives to any other cause or origin, than those which ought 
to actuate our exertions in the various duties of life: I 
appeal with a conscience void of offence — with a confi- 
dence supported by indisputable and irrefragible facts and 
circumstances, for my industry, entire devotion, unspotted 
integrity, and ardent zeal in the furtherance of the best in- 
terests of that institution, over which it was my lot, and 
misfortune, to preside. If there ever was a man who 
threw his whole soul into the promotion of the cardinal 
interest of a monied institution ; whose pride, ambition and 
hopes were all concentrated for the consummation of suc- 
cess in a monied or any other institution, J claim to be that 
man. That I have been unsuccessful in my exertions is 
my misfortune, and not my fault ; that I deserved a better 
fate, is a conviction deeply engraven on my heart ; the ruin 
which ensued did not follow from any misconduct, or im- 
prudence on my part — nor ought the losses which others 
have met with, in candid justice, to be charged to my ac- 
count. 1 have never done a single act, nor permitted it to 
be done by any other person, at the expense of any creditor 
of this institution, or to the injury of the institution itself. 
jMy part and duty at all times, whether as a Director only, 
or President of the institution, have been performed upon 
fair, independent, just and honorable principles. From 
the incipient undertaking of business with the Bank, up to 
the day of its dissolution, there never has been a note dis- 
counted, or an accommodation given, directly or indi- 
rectly, on my account. 1 have never made the institution 
subservient to my interest or convenience, nor to that of 
my friends, family, or connexions. It never has been ne- 
cessary for me to ask, individually, any tavors of this de- 


87 


scription of any institution, more than three times, during 
the whole period of my business in life. 

With these remarks, I commit my case, and my reputa- 
tion, with deep and indescribable feeling, to a candid, un- 
prejudiced and enlightened community. The explana- 
tion may not be as full and satisfactory as could be wished; 
but I offer it, with all its imperfections, to the peru- 
sal of the public. It is the first, and will be the last of 
the kind ever offered by me. Should it not satisfy the 
rigid expectations of some, the unreasonable demands of 
others, or the prejudices, or interests of any, it is a satis- 
faction and a solace to my mind, that I have given the 
fairest exposition in my power to afford. That it is the best, 
under the circumstances in which 1 am placed, that can 
now be furnished — that it is true, and written in the fulness 
of my heart — in great humiliation, in the faithfulness of 
truth and honor, I know ; and I commit it to the world as a 
peace offering between myself and fellow men, as the off- 
spring of undeserved persecution ; and it rests between them 
and me, for their candour and consideration. To the 
truth of all which, 1 appeal to that Maker who searcheth 
all hearts. 


SAMUEL LEGGETT. 

♦ 




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